- USDTHB: moving in the range 35.50-35.57 this morning supportive level at 35.40 resistance level at 35.70
· SET Index: 1,519.6 (-0.08%), 16 Aug 2023
· S&P 500 Index: 4,404.3 (-0.76%), 16 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.66 (+1.70 bps), 16 Aug 2023
· US 10-year treasury yield: 4.28 (+7.00 bps), 16 Aug 2023
- US housing starts surge in boost to economy
- UK inflation pressure stays strong despite fall in headline rate
- Japan exports fall for first time since 2021, stoking concerns about outlook
- Dollar ticks higher versus yen, China fears drag on yuan
US housing starts surge in boost to economy U.S. single-family homebuilding surged in July and permits for future construction rose amid an acute shortage of previously owned houses, but mortgage rates climbing back to near two-decade highs could slow the housing market improvement. The sharp rebound in groundbreaking on single-family housing units reported by the Commerce Department on Wednesday was another sign of the economy continuing to defy dire forecasts of a recession. It followed news on Tuesday that retail sales rose strongly in July, which prompted economists to upgrade their growth estimates for the third quarters. With inflation retreating, economists did not see the flow of upbeat data leading to another interest rate hike next month. Single-family housing starts, which account for the bulk of homebuilding, jumped 6.7% to a seasonally adjusted annual rate of 983,000 units last month.
UK inflation pressure stays strong despite fall in headline rate Worries about persistently high inflation in Britain grew on Wednesday as key measures of price growth monitored by the Bank of England failed to ease in July, despite a sharp drop in the headline inflation rate. The annual consumer price inflation rate cooled to 6.8% from June's 7.9%, the Office for National Statistics said - as the central bank and a Reuters poll of economists had predicted and moving further away from October's peak of 11.1%. The drop in the headline rate reflected falling energy prices and will be welcomed by British consumers who have faced higher inflation than in most other industrialized countries. But fresh signs of stickiness in core inflation and consumer service prices echoed warnings by BoE policymakers this month that the risks of long-lasting high inflation were beginning to crystallize.
Japan exports fall for first time since 2021, stoking concerns about outlook Japan's exports fell in July for the first time in nearly 2-1/2 years, dragged down by faltering demand for light oil and chip-making equipment, underlining concerns about a global recession as key markets like China weakened. Ministry of Finance (MOF) data out Thursday showed Japanese exports fell 0.3% in July year-on-year, compared with a 0.8% decrease expected by economists in a Reuters poll. It followed a 1.5% rise in the previous month. Separate data by the Cabinet Office showed a key gauge of capital expenditures rose in June, providing a glimmer of hope for fostering sustainable economic growth. Overall, the batch of data underscored fragility in Japan's export engine that helped underpin second quarter domestic product (GDP) growth, with car shipments and inbound tourism the biggest drivers.
Dollar ticks higher versus yen, China fears drag on yuan The 10-year government bond yield (interpolated) on the previous trading day was 2.66, +1.70 bps. The benchmark government bond yield (LB31DA) was 2.64, +2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.28, +7.00 bps. USDTHB on the previous trading day closed around 35.43. Moving in a range of 35.50-35.57 this morning. USDTHB could be closed between 35.40-35.70 today. The Japanese yen further weakened against the dollar on Wednesday, hovering in a zone that last year triggered intervention, while the yuan slipped to a nine-month low as fears mounted about the extent of China's slowdown. The yen has hit the key 145 per dollar level for four sessions, which triggered heavy dollar selling by Japanese authorities in September and October last year. It last weakened 0.45% versus the greenback to 146.22 per dollar, after hitting 146.260, a level not seen since November. Finance Minister Shunichi Suzuki said on Tuesday authorities were not targeting absolute currency levels for intervention.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
