- USDTHB: moving in the range 34.18-34.28 this morning supportive level at 34.10 resistance level at 34.30
· SET Index: 1,543.30 (+1.22%), 28 Jul 2023
· S&P 500 Index: 4,582.2 (+0.98%), 28 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.58 (-1.12 bps), 28 Jul 2023
· US 10-year treasury yield: 3.96 (-5.0 bps), 28 Jul 2023
- U.S. GDP accelerates to 2.4% in the second quarter; jobless claims decline
- US annual inflation posts smallest rise in more than two years
- Tokyo CPI inflation grows sticky in July as BOJ meeting approaches
- BOJ tweak stirs yen volatility; dollar stays down after US data
U.S. GDP accelerates to 2.4% in the second quarter; jobless claims decline Economic growth in the U.S. accelerated in the second quarter as activity remained largely resilient in the face of an aggressive bout of Federal Reserve policy tightening. The world's biggest economy expanded by 2.4% on an annual basis in the April to June period, according to preliminary data from the Commerce Department on Thursday. Economists had called for growth of 1.8%. The reading picked up the pace from 2.0% in the first three months of the year, which was down from 2.6% in the fourth quarter of 2022. The labor market has also stayed robust, with separate data on Thursday showing that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week to 221,000.
US annual inflation posts smallest rise in more than two years Annual U.S. inflation rose at its slowest pace in more than two years in June, with underlying price pressures receding, a trend that, if sustained, could push the Federal Reserve closer to ending its fastest interest rate hiking cycle since the 1980s. The personal consumption expenditures (PCE) price index increased 0.2% last month after edging up 0.1% in May, the Commerce Department said. Food prices dipped 0.1% while the cost of energy products increased 0.6%. In the 12 months through June, the PCE price index advanced 3.0%. That was the smallest annual gain since March 2021 and followed a 3.8% rise in May. Economists polled by Reuters had forecast the core PCE price index would gain 0.2% and rise 4.2% on a year-on-year basis.
Tokyo CPI inflation grows sticky in July as BOJ meeting approaches Consumer inflation in Japan’s capital grew more than expected in July, likely heralding a similar trend from nationwide inflation and putting more pressure on the Bank of Japan to eventually begin tightening policy. Tokyo core consumer price index (CPI) inflation, which ignores volatile fresh food prices, rose 3% in July, slightly ahead of forecasts of 2.9%, data from the Statistics Bureau showed on Friday. The reading was lower than the prior month’s figure of 3.2% but remained well above the BOJ’s 2% target range. Overall Tokyo CPI grew 3.2%, well above expectations of 2.8% and accelerating from the 3.1% seen in June. Inflation also grew 0.4% in July from the prior month.
BOJ tweak stirs yen volatility; dollar stays down after US data The 10-year government bond yield (interpolated) on the previous trading day was 2.58, -1.12 bps. The benchmark government bond yield (LB31DA) was 2.59, -1.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.96, -5.00 bps. USDTHB on the previous trading day closed around 34.08 Moving in a range of 34.18-34.28 this morning. USDTHB could be closed between 34.00-34.50 today. The yen had its most volatile trading session in months on Friday after the Bank of Japan tweaked its yield curve control policy, leaving investors wondering if an eventual shift in its massive stimulus program is approaching. Whipsawing as traders digested the decision, the Japanese yen weakened 1.13% versus the greenback and was last at 141.05 per dollar in the New York afternoon session. The BOJ is offering to buy 10-year Japanese government bonds (JGB) at 1.0% and is keeping its short-term interest rate at minus 0.1% and the 10-year government bond yield around 0%. Meanwhile, the dollar fell against a basket of its major peers as investors largely shrugged off new data showing inflation slowing as they continue to sort through multiple central bank decisions this week to understand the outlook for monetary policy.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
