- USDTHB: moving in the range 35.92-36.02 this morning supportive level at 35.90 resistance level at 36.10
· SET Index: 1,389.6 (-1.10%), 10 Nov 2023
· S&P 500 Index: 4,415.2 (+0.74%), 10 Nov 2023
· Thai 10-year government bond yield (interpolated): 3.14 (+6.07 bps), 10 Nov 2023
· US 10-year treasury yield: 4.61 (-1.00 bps),10 Nov 2023
- US consumer sentiment drops again in November, inflation expectations rise
- Japan's wholesale inflation slows sharply in sign of waning cost pressures
- Chinese deflation pressures global exporters, yuan's low aids domestic manufacturers
- Dollar dips against euro, gains on yen as Fed policy stays in focus
US consumer sentiment drops again in November, inflation expectations rise U.S. consumer sentiment fell for a fourth straight month in November and households' expectations for inflation rose again, with their medium-term outlook for price pressures shooting to the highest level in more than a dozen years. The University of Michigan's preliminary reading of its Consumer Sentiment Index dropped to 60.4, the lowest level since May, from October's final reading of 63.8. The median expectation among economists in a Reuters poll had been for the index to be little changed at 63.7. Consumers' outlook for inflation in the year ahead rose for a second month to a seven-month high of 4.4%. Meanwhile, over a five-year horizon, consumers expect inflation to average 3.2%, up from 3.0% in October and the highest since March 2011.
Japan's wholesale inflation slows sharply in sign of waning cost pressures Japanese wholesale inflation slowed below 1% for the first time in just over 2-1/2-years, a sign that cost push pressures that had been driving up prices for a wide range of goods were starting to fade. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, increased 0.8% in October from a year earlier, roughly matching a median market forecast for a 0.9% gain but cooling significantly from a 2.2% rise in September. That marked the 10th straight month of slowing wholesale inflation with the year-on-year growth rate coming in below 1% for the first time since February 2021. The slowdown was due to declines in prices for wood, chemical and steel products, the data showed, highlighting the impact of falling global commodity costs.
Chinese deflation pressures global exporters, yuan's low aids domestic manufacturers A new report by HSBC analysts casts light on the challenges faced by exporters to China, the world's second-largest economy, which is currently grappling with deflation. Exporters from Southeast Asia, Germany, Taiwan, and South Korea are finding themselves in a tight spot due to reduced demand and increased competition from mainland Chinese manufacturers. The onshore yuan's 16-year low against the US dollar adds another layer of complexity to the situation. This exchange rate provides significant price benefits to Chinese manufacturers, making them more competitive both domestically and globally. Recent data shows a 0.2% decrease in consumer prices and a 2.6% reduction in factory-gate costs in China. These figures indicate a deflationary trend driven by excess capacity in the Chinese economy. This trend is pushing down global prices for manufactured goods and creating disinflationary pressure from the Chinese manufacturing sector.
Dollar dips against euro, gains on yen as Fed policy stays in focus The 10-year government bond yield (interpolated) on the previous trading day was 3.14, +6.07 bps. The benchmark government bond yield (LB31DA) was 3.065,+2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.61, -1.00 bps. USDTHB on the previous trading day closed around 35.81. Moving in a range of 35.92-36.09 this morning. USDTHB could be closed between 35.90-36.10 today. The dollar dipped against the euro on Friday but gained against the yen as investors evaluated comments by Federal Reserve Chair Jerome Powell that the central bank could hike rates again if inflation remains above its target. The Japanese currency also remained on watch for possible intervention as it holds near a one-year low against the greenback. Powell and other Fed officials said on Thursday that they are still not sure that interest rates are high enough to finish the battle with inflation, with Powell saying that the Fed may get further help in taming price increases from improvements in the supply of goods, services and labor.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
