- USDTHB: moving in the range 34.75-34.815 this morning supportive level at 34.60 resistance level at 34.85
· SET Index: 1,556.9 (-0.16%), 19 Jun 2023
· S&P 500 Index: 4,409.6 (-0.37%), 16 Jun 2023
· Thai 10-year government bond yield (interpolated): 3.62 (-0.78 bps), 19 Jun 2023
· US 10-year treasury yield: 3.77 (+5.00 bps), 16 Jun 2023
- Euro zone May inflation confirmed at 6.1% yr/yr, core eases
- Japan Finance Minister says no change in FX policy after US report
- China cuts lending benchmark rate as economic recovery sputters
- Dollar nudges up, sterling near 14-month highs ahead of BoE decision
Euro zone May inflation confirmed at 6.1% yr/yr, core eases Euro zone consumer inflation sharply decelerated in May, the European Union's statistics office confirmed on Friday, with the core price growth measure, watched closely by the central bank, also slowing. Eurostat confirmed its earlier estimates that consumer in the 20 countries did not change at all month-on-month in May resulting in a 6.1% rise year-on-year, down from 7.0% year-on-year in April. The contribution from energy prices, long the main driving force of inflation, was negative in May at 0.09 points and the main driver became the cost of food, alcohol and tobacco which added 2.54 points to the final figure. The second biggest contributor was the rising prices of services, adding 2.15 points, with industrial goods adding another 1.51 points.
Japan Finance Minister says no change in FX policy after US report Japan’s currency policy won’t immediately change after the United States removed the country from its monitoring list, Finance Minister Shunichi Suzuki said on Tuesday, noting that the move came in coordination with Washington. “As for currency policy, we’ll keep close communications with the United States and other countries,” Suzuki told reporters. “The fact that Japan was removed from the list doesn’t immediately mean that we would respond in a different way from before or there’s any impact.“ The U.S. Treasury on Friday said it found that no major U.S. trading partners had manipulated their currencies for an export advantage, adding it ended “enhanced analysis” for Switzerland after the country met one of three manipulation criteria.
China cuts lending benchmark rate as economic recovery sputters The People’s Bank of China cut its benchmark loan prime rate for the first time in 10 months on Tuesday, moving to increase local stimulus measures as a post-COVID economic recovery in the country ran out of steam. The PBOC cut its one-year Loan Prime Rate (LPR) to 3.55% from 3.65%, while the five-year LPR, which is used to determine mortgage rates, was cut to 4.20% from 4.30%. The move was largely as expected by markets, given that the PBOC trimmed its medium and short-term lending rates last week. The LPR is decided by the central bank based on considerations taken from 18 designated commercial banks, who had also begun cutting rates on yuan deposits earlier in June. Tuesday’s cut, which is the first such move by the PBOC since a surprise cut in August 2022, comes as a string of weak indicators pointed to a slowing economic recovery in China over the past two months.
Dollar nudges up, sterling near 14-month highs ahead of BoE decision The 10-year government bond yield (interpolated) on the previous trading day was 2.62, -0.78 bps. The benchmark government bond yield (LB31DA) was 2.625, -1.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.77, +5.00 bps. USDTHB on the previous trading day closed around 34.75 Moving in a range of 34.75-34.815 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar edged higher, and the UK pound was near a 14-month peak on Monday as investors digested a slew of monetary policy decisions by central banks last week and looked ahead to a crunch decision by the Bank of England on Thursday. Currency market moves have been dominated by central bank efforts globally to curb high inflation, with the dollar index sliding to its biggest weekly fall since January last week after the U.S. Federal Reserve skipped a rate rise. The dollar index, which measures the U.S. currency against six major counterparts, ticked up 0.2% to 102.480. It remained not far from a one-month low of 102.00 it touched on Friday. U.S. markets are closed on Monday for a holiday. Investors expect the Bank of England to hike rates by at least 25 basis points when it meets on Thursday, as it battles inflation running at more than four times its target.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
