- USDTHB: moving in the range 35.47-35.57 this morning supportive level at 35.40 resistance level at 35.70
· SET Index: 1,417.2 (-0.18%), 6 Nov 2023
· S&P 500 Index: 4,366.0 (+1.11%), 6 Nov 2023
· Thai 10-year government bond yield (interpolated): 3.18 (-4.12 bps), 6 Nov 2023
· US 10-year treasury yield: 4.67 (+10.00 bps), 6 Nov 2023
- US service sector at five-month low in October
- Euro zone recession fears harden as surveys show grim start to Q4
- German service sector activity contracts in October
- Dollar rebounds, Fed officials take center stage
US service sector at five-month low in October The US services sector slowed for a second straight month in October, but momentum is likely to pick up in the near term amid an acceleration in growth in new orders. The Institute for Supply Management (ISM) said on Friday that its non-manufacturing PMI dropped to a five-month low of 51.8 from 53.6 in September. The Services PMI has been declining since August, when it rose to the highest level in six months. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the index slipping to 53.0. Demand for services initially surged as Americans resumed normal lives after COVID-19 lockdowns. But momentum has ebbed, with spending swinging back to goods. Spending on goods far outpaced outlays on services in the third quarter.
Euro zone recession fears harden as surveys show grim start to Q4 The downturn in euro zone business activity accelerated last month as demand in the dominant services industry weakened further, suggesting there is a growing chance of a recession in the 20-country currency union. The economy contracted 0.1% in the third quarter, official data has shown, and Monday's final Composite Purchasing Managers' Index (PMI) for October indicated the bloc entered the final quarter of 2023 on the back foot. HCOB's PMI, compiled by S&P Global and seen as a good guide of overall economic health, fell to 46.5 in October from September's 47.2, its lowest reading since November 2020 when COVID-19 restrictions were tightened on much of the continent. That was below the 50-mark separating growth from contraction for a fifth consecutive month and matched a preliminary estimate.
German service sector activity contracts in October The German service sector slipped back into contraction in October amid persistent weakness in demand. The HCOB final services Purchasing Managers' Index (PMI) fell to 48.2 in October from 50.3 in September, sliding back below the 50 level that signals growth in activity. The service sector's performance continued to be undermined by a lack of incoming new work, the survey showed. There continued to be only limited spillover to the labor market, however, with employment decreasing just fractionally. October's survey showed that service providers were only cautiously optimistic about the year-ahead outlook for activity, with concerns about the wider economy and persistent inflationary pressures dampening confidence.
Dollar rebounds, Fed officials take center stage The 10-year government bond yield (interpolated) on the previous trading day was 3.18, -4.12 bps. The benchmark government bond yield (LB31DA) was 3.20,-6.00 bps. Meantime, the latest closed US 10-year bond yields was 4.67, -10.00 bps. USDTHB on the previous trading day closed around 35.43. Moving in a range of 35.47-35.57 this morning. USDTHB could be closed between 35.40-35.70 today. The US dollar edged higher against the euro on Monday, after earlier dipping to an almost 8-week low on growing expectations that the Federal Reserve is done hiking interest rates, with US central bank officials in focus this week for further signals on rate policy. Fed Chairman Jerome Powell is due to speak on Wednesday and Thursday, where the focal point will be on whether he maintains the more dovish tone he struck after the Fed’s two-day meeting last week. Comments from other Fed officials will also be evaluated for signs on whether they expect further rate increases. Weaker than expected jobs growth in October released on Friday added to expectations of a slowing US economy, which would support the Fed continuing to hold rates steady.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
