- USDTHB: moving in the range 35.08-35.165 this morning supportive level at 35.00 resistance level at 35.30
· SET Index: 1,533.4 (+0.33%), 10 Aug 2023
· S&P 500 Index: 4,468.8 (+0.03%), 10 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.61 (-1.23 bps), 10 Aug 2023
· US 10-year treasury yield: 4.09 (+9.00 bps), 10 Aug 2023
- U.S. inflation rose by slower-than-expected 3.2% in July
- Japan wholesale inflation slows again, bolstering case for stimulus
- Singapore Q2 GDP revised lower as 2023 outlook dims
- US dollar recovers from inflation-related losses; yen slumps
U.S. inflation rose by slower-than-expected 3.2% in July Annual U.S. inflation accelerated by less than expected in July and rose at the same pace on a monthly basis, pointing to a possible easing in price pressures and potentially bolstering the case for the Federal Reserve to pull back from its long-standing cycle of interest rate increases. The headline consumer price index (CPI) held steady at 0.2% month-on-month, meeting estimates. Yearly, the reading increased by 3.2%, quickening from 3.0% in June. Economists had expected the figure to jump by 3.3%. Meanwhile, core CPI, which strips out volatile items like food and energy, was also unchanged at 0.2% monthly. Year-on-year, the core figure rose by 4.7%, a slower rate than the projected uptick of 4.8%. Along with loosening a tight labor market, cooling red-hot inflation has been the main objective of Fed policy during its more than a year-long campaign of interest rate hikes.
Japan wholesale inflation slows again, bolstering case for stimulus Japan's wholesale inflation eased for a seventh month in July as pressure from high global commodity prices eased, a development economists say is likely to encourage the central bank to keep its monetary stimulus in place. The 3.6% rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, is slightly above the median market forecast for a 3.5% annual increase and follows a 4.3% annual increase in June. It was the slowest wholesale inflation since March 2021 when prices turned positive to mark 1.0% growth, Bank of Japan (BOJ) data showed. After peaking at 10.6% in December, wholesale inflation has decelerated for seven months in a row. On the month, wholesale prices rose 0.1%, up for the first time in three months.
Singapore Q2 GDP revised lower as 2023 outlook dims Singapore’s economy grew less than initially expected in the second quarter, official data showed on Friday, with the government also positing a weaker outlook for 2023 as a manufacturing and export slowdown weighed. Singapore gross domestic product (GDP) grew just 0.1% in the June quarter from the prior one, lower than initial estimates for growth of 0.4%. The data shows that the economy barely grew in the second quarter after a 0.4% contraction in the first quarter. Year-on-year, GDP grew 0.5%, lower than initial estimates for growth of 0.7%, and slightly better than the 0.4% growth seen in the prior quarter. The weaker figures come as the island state grapples with a severe slowdown in manufacturing activity, as well as its key electronics exports. This trend has persisted for over a year, amid worsening economic conditions in major trading partner China.
US dollar recovers from inflation-related losses; yen slumps The 10-year government bond yield (interpolated) on the previous trading day was 2.61, -1.23 bps. The benchmark government bond yield (LB31DA) was 2.62, -1.0 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.09, +9.00 bps. USDTHB on the previous trading day closed around 35.11. Moving in a range of 35.08-35.165 this morning. USDTHB could be closed between 35.00-35.50 today. The dollar reversed losses on Thursday, led by gains against the yen, as investors digested U.S. inflation numbers that showed a moderate increase last month, but are still way above the Federal Reserve's 2% inflation target. The greenback climbed to five-week peaks against the yen of 144.735, and last traded up 0.7% at 144.71 yen. So far this year, the dollar has gained 10.4% versus the Japanese currency. The U.S. unit also pared gains against the euro, which last changed hands at $1.0985, up just 0.1%. The recovery of the dollar against both the euro and yen pushed the dollar index up 0.1% to 102.56.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
