- USDTHB: moving in the range 34.98-35.06 this morning supportive level at 34.95 resistance level at 35.20
· SET Index: 1,508.9 (-0.43%), 5 Jul 2023
· S&P 500 Index: 4,446.8 (-0.20%), 5 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.55 (+0.64 bps), 5 Jul 2023
· US 10-year treasury yield: 3.95 (+9.0 bps), 5 Jul 2023
- U.S. factory orders miss expectations in May
- Euro zone business activity contracts in June
- Thai headline inflation at 22-month low, but central bank may hike rate further
- Dollar gains after Fed minutes reinforce rate hike expectations
U.S. factory orders miss expectations in May New orders for U.S.-made goods increased less than expected in May as a surge in civilian aircraft orders was partially offset by sluggishness elsewhere amid higher interest rates that are eroding demand. Factory orders rose 0.3% after advancing by the same margin in April, the Commerce Department said on Wednesday. Economists polled by Reuters had forecast orders rising 0.8%. Orders increased 1.1% through May from a year earlier. In addition to the higher interest rates, manufacturing, which accounts for 11.1% of the economy, is being constrained by spending shifting to services from goods, typically bought on credit as well as businesses carefully managing inventories in anticipation of weak demand. The Institute for Supply Management's manufacturing PMI dropped in June, marking the eighth straight month that the index stayed below the 50 threshold, which indicates contraction in manufacturing. That is the longest such stretch since the Great Recession.
Euro zone business activity contracts in June Euro zone business activity slipped into contractionary territory last month in a broad-based downturn across the bloc’s dominant services industry and a deepening decline of factory output, a survey showed. HCOB’s final Composite Purchasing Managers’ Index (PMI), compiled by S&P Global and seen as a good gauge of overall economic health, slumped to 49.9 in June from May’s 52.8. That was below the 50-mark separating growth from contraction for the first time since December and shy of a preliminary estimate for 50.3. A sister survey released on Monday showed manufacturing activity contracted faster than initially thought and Wednesday’s final PMI covering the services industry dropped to 52.0 from 55.1, lower than the 52.4 flash reading. The services new business index was barely above breakeven at a five-month low of 51.0. The preliminary reading was 51.3 and in May it was 53.3.
Thai headline inflation at 22-month low, but central bank may hike rate further Thailand's annual headline inflation unexpectedly rose in June but at its slowest pace in 22 months, and the commerce ministry on Wednesday lowered its forecast for consumer price rises for the whole year. The headline consumer price index (CPI) increased 0.23% in June from a year earlier, compared with a forecast fall of 0.1% in a Reuters poll, and against May's 0.53% year-on-year rise. The slower headline pace was due to lower food and energy prices and a high base last year, which should continue to help hold down consumer prices, the ministry said. It was the second straight month that headline CPI dropped below the central bank's target range of 1% to 3%.
Dollar gains after Fed minutes reinforce rate hike expectations The 10-year government bond yield (interpolated) on the previous trading day was 2.55, +0.64 bps. The benchmark government bond yield (LB31DA) was 2.54, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.95, +9.00 bps. USDTHB on the previous trading day closed around 34.90 Moving in a range of 34.98-34.06 this morning. USDTHB could be closed between 35.00-35.50 today. The U.S. dollar edged higher against other major currencies on Wednesday after minutes from the Federal Reserve's June policy meeting reinforced market expectations of another interest rate hike at the end of July. Almost all Fed officials agreed to hold interest rates steady last month and most expected policymakers would eventually need to tighten policy further, a view that pushed Treasury yields higher and added to earlier dollar gains. Fed funds futures showed expectations of a 25-basis point hike at the end of a two-day policy meeting on July 26 rose to 88.7%, according to CME Group’s FedWatch Tool.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
