- USDTHB: moving in the range 35.45-35.54 this morning supportive level at 35.30 resistance level at 35.60
· SET Index: 1,401.7 (-0.38%), 16 Jan 2024
· S&P 500 Index: 4,7366.0 (-0.37%), 16 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.73 (+0.98 bps), 16 Jan 2024
· US 10-year treasury yield: 4.07 (+11.00 bps), 16 Jan 2024
- Japan's wholesale inflation flat in December, eases pressure on BOJ
- China's Q4 GDP grows 5.2% y/y, below market forecast
- Oil prices dip as strong dollar, rate fears offset M.East disruptions
- Dollar rallies to one-month high as Fed cut outlook dims
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, showed BOJ data. 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.
China's Q4 GDP grows 5.2% y/y, below market forecast China's economy grew 5.2% in the fourth quarter from a year earlier, official data showed on Wednesday, missing analysts' expectations slightly but still ensuring Beijing met its annual growth target despite a shaky start to the year. Confounding most analysts' expectations, the world's second-largest economy has struggled to mount a strong and sustainable post-COVID pandemic bounce, burdened by a protracted property crisis, weak consumer and business confidence, mounting local government debts, and slower global growth. Analysts polled by Reuters had forecast fourth-quarter gross domestic product (GDP) would expand 5.3% from a year earlier, quickening from the third quarter's 4.9% pace. For the full-year 2023, the economy grew 5.2%, data from the National Bureau of Statistics data showed, partly helped by the previous year's low-base effect which was marked by COVID-19 lockdowns.
Oil prices dip as strong dollar, rate fears offset M.East disruptions Oil prices fell on Wednesday, facing persistent pressure from a stronger dollar and uncertainty over US interest rates, although bigger losses were held back by fears of supply disruptions in the Middle East. The dollar raced to a one-month high on Tuesday, as Federal Reserve officials downplayed expectations for early rate cuts by the central bank. A stronger dollar hurts demand by making crude more expensive for international buyers. The prospect of higher-for-longer rates also presents a weaker outlook for oil demand, given that economic activity usually cools in a high-rate environment. Brent oil futures expiring in March fell 0.6% to $77.81 a barrel, while West Texas Intermediate crude futures fell 0.7% to $72.02 a barrel. Oil markets were also on edge ahead of key gross domestic product data from top importer China, which is largely expected to set the tone for an economic recovery in 2024 after a dismal 2023.
Dollar rallies to one-month high as Fed cut outlook dims The 10-year government bond yield (interpolated) on the previous trading day was 2.73, +0.98 bps. The benchmark government bond yield (LB31DA) was 2.71, +0.50 bps. Meantime, the latest closed US 10-year bond yields was 4.07, +11.00 bps. USDTHB on the previous trading day closed around 35.14 Moving in a range of 35.45-35.54 this morning. USDTHB could be closed between 35.30-35.60 today. The dollar jumped in a volatile session on Tuesday as investors dialed back expectations for a March rate cut from the US Federal Reserve, fueled in part by comments by Board Governor Christopher Waller. Markets are pricing in a 66.9% chance of a rate cut of at least 25 basis points (bps) in March from the Fed, compared with an 81% view in the prior session according to CME's FedWatch Tool. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up 0.73% at 103.38, after climbing as high as 103.42, its highest level since Dec. 13. The index was on track for its biggest one-day percentage gain since Jan. 2.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
