- USDTHB: moving in the range 35.03-35.10 this morning supportive level at 35.00 resistance level at 35.20
· SET Index: 1,528.3 (+0.65%), 9 Aug 2023
· S&P 500 Index: 4,467.7 (-0.71%), 9 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.62 (+1.30 bps), 8 Aug 2023
· US 10-year treasury yield: 4.00 (-2.00 bps), 9 Aug 2023
- U.S. mortgage rates spike to highest since November, approach 22-year high
- Chinese CPI inflation contracts in July, PPI falls more than expected
- South Korea unemployment rate climbs to six-month high
- US dollar inches lower ahead of inflation report
U.S. mortgage rates spike to highest since November, approach 22-year high The average U.S. 30-year mortgage rate jumped to a nine-month peak on Wednesday and hit the second-highest rate since 2001, as interest rates reacted sharply to a downgrading of U.S. government debt. The average 30-year mortgage rate shot up to 7.09% for the week ending Aug. 4, a 16-basis point increase from the previous week's 6.93% rate, according to a weekly report released by the Mortgage Bankers Association. Rates have not been that high since November 2022, which were then the highest levels since 2001. Potential borrowers adjusted promptly to the surging cost of borrowing: the mortgage applications index - a measure of total mortgage application volume - fell 3.1% to a six-month low of 194.5. Recent data has suggested that the home price cooling engineered by the Federal Reserve's aggressive interest rate hiking campaign could be slowing down.
Chinese CPI inflation contracts in July, PPI falls more than expected Chinese consumer inflation shrank in July, indicating that local liquidity and spending remained weak amid slowing business activity, while a decline in factory gate inflation also continued through the month. Consumer price index (CPI) inflation fell 0.3% in the 12 months to July, slightly better than expectations for a drop of 0.4%, data from the National Bureau of Statistics showed on Wednesday. This came after a flat reading for June and marks the first annual contraction in CPI since September 2021. CPI inflation rose 0.2% from the prior month, slightly beating out expectations for growth of 0.1%. PPI inflation shrank 4.4% in July, more than expectations for a drop of 4.1%. While the reading did show some improvement from the 5.4% decline in June, it still remained close to its worst levels since the yuan crisis of 2016.
South Korea unemployment rate climbs to six-month high South Korea's jobless rate climbed in July for a second month and hit the highest since January, with job growth its slowest in nearly 2-1/2 years. The unemployment rate rose to 2.8% in July on a seasonally adjusted basis, from 2.6% in June, Statistics Korea data showed. Its reading of 2.5% in May was the lowest since the data series began in June 1999. The number of employed people increased by 211,000 in July from the year before, smaller than a rise of 333,000 in June and the smallest since February 2021. By industry, the health and social welfare sector added 145,000 jobs and the accommodation and food services added 125,000, but construction and agricultural sectors lost 43,000 and 42,000 jobs, respectively.
US dollar inches lower ahead of inflation report The 10-year government bond yield (interpolated) on the previous trading day was 2.62, +1.30 bps. The benchmark government bond yield (LB31DA) was 2.605, +1.5 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.00, -2.00 bps. USDTHB on the previous trading day closed around 34.95. Moving in a range of 35.03-35.10 this morning. USDTHB could be closed between 34.80-35.30 today. The U.S. dollar drifted lower in thin rangebound trading, with investors looking ahead to Thursday's U.S. consumer prices report for indications on where the Federal Reserve's monetary policy is headed. The greenback posted steeper losses earlier in the session, particularly after data showing the Chinese economy slipped into deflation last month. That raised the chances of China launching additional stimulus measures and nudged investors into risk assets. Reported dollar selling by state-owned Chinese banks also helped the yuan rally from a one-month low, dealers said. The Chinese central bank's stronger-than-expected exchange-rate fixing at 7.1588 per dollar before the open signaled its discomfort with the yuan's recent declines.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
