- USDTHB: moving in the range 35.00-35.14 this morning supportive level at 34.90 resistance level at 35.20
· SET Index: 1,407.0 (-0.46%), 15 Jan 2024
· S&P 500 Index: 4,738.8 (+0.08%), 12 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.72 (-0.24 bps), 15 Jan 2024
· US 10-year treasury yield: 3.96 (-2.00 bps), 12 Jan 2024
- US congressional leaders unveil stopgap bill to avert shutdown
- German economy dodges recession despite shrinking 0.3% in 2023
- Japan's wholesale inflation flat in December, eases pressure on BOJ
- Dollar little changed on MLK Day, sterling slides in risk-off trading
US congressional leaders unveil stopgap bill to avert shutdown Democratic and Republican leaders in the US Congress unveiled a short-term spending bill that would avert a partial government shutdown and keep federal agencies operating into March. The agreement aims to avert short-term chaos and buy more time to craft the complex spending legislation that funds government activity. Government agencies that oversee transportation, housing, and other services are due to run out of funding by midnight on Friday and would have to scale back activity if new funding is not signed into law. The Democratic-led Senate and Republican-controlled House of Representatives have been at odds over spending levels for months. The legislation could run into difficulty in the House, where a faction of conservative Republicans have used disruptive tactics to press for lower spending levels.
German economy dodges recession despite shrinking 0.3% in 2023 The German economy contracted in 2023, due to persistent inflation, high energy prices and weak foreign demand, but it avoided a recession at the end of the year. Gross domestic product (GDP) shrank by 0.3% over the full-year 2023. The full-year decrease in GDP was in line with the forecast by analysts polled by Reuters. The recent fall in inflation should provide some relief for households, but residential and business investment are likely to contract, construction is heading for a steep downturn and the government is tightening fiscal policy sharply, forecasting zero GDP growth in 2024. The German economy did not continue its recovery from the sharp economic slump experienced in the pandemic year of 2020, but GDP was 0.7% higher in 2023 than in 2019, the year before the COVID-19 pandemic hit.
Japan's wholesale inflation flat in December, eases pressure on BOJ Japan's wholesale inflation was flat in December from a year earlier, slowing for the 12th consecutive month, underscoring the central bank's view that cost-push pressure from rising raw material prices will steadily dissipate. The data indicate that rises in consumer inflation will moderate in coming months, and take pressure off the Bank of Japan (BOJ) to phase out its massive monetary stimulus soon. The reading for the corporate goods price index (CGPI), which measures the prices companies charge each other for their goods and services, compared with a median market forecast for a 0.3% fall and followed a 0.3% increase in November. The result was the lowest since a 0.9% drop in February 2021. The slowdown in wholesale prices was due partly to government subsidies to curb petrol and utility bills, which combined shaved 0.9% point off wholesale inflation, a BOJ official told a briefing.
Dollar little changed on MLK Day, sterling slides in risk-off trading The 10-year government bond yield (interpolated) on the previous trading day was 2.72, -0.24 bps. The benchmark government bond yield (LB31DA) was 2.71, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 3.96, -2.00 bps. USDTHB on the previous trading day closed around 34.85 Moving in a range of 35.00-35.14 this morning. USDTHB could be closed between 34.90-35.20 today. The dollar was little changed in cautious during a US public holiday, while risk-sensitive sterling slid ahead of a busy week for UK economic data. The dollar index, measuring the US currency against six peers, was up 0.13% at 102.64, on the Martin Luther King (MLK) Day holiday. Bets on Federal Reserve cuts this year, beginning as early as March, have intensified after data on Friday showed US producer prices unexpectedly fell in December. Market pricing now points to a 77% chance that the US central bank will begin easing rates in March, up from 68% a week ago, according to the CME FedWatch tool.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
