- USDTHB: moving in the range 35.35-35.435 this morning supportive level at 35.25 resistance level at 35.50
· SET Index: 1,373.1 (-0.23%), 30 Jan 2024
· S&P 500 Index: 4,925.0 (-0.06%), 30 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.64 (-1.53 bps), 30 Jan 2024
· US 10-year treasury yield: 4.06 (-2.00 bps), 30 Jan 2024
- Euro zone economy lags global growth as Germany struggles
- Japan Dec factory output rises on production machinery
- BOJ made hawkish tilt in January, debated stimulus exit scenarios
- Dollar mixed in tight trading range before Fed statement
Euro zone economy lags global growth as Germany struggles The euro zone's economy stagnated last year, underperforming the rest of the world as former powerhouse Germany struggled with an industrial malaise that has no end in sight. The 20 countries that share the euro barely avoided a recession in the final quarter of last year even as the global economy expanded and the eurozone's biggest trading partner, the United States, chalked up impressively brisk growth. The euro area's underperformance was mostly due to weakness in Germany, which has seen its business model relying on cheap energy from Russia and intense two-way trade with China upended by geopolitical events. Europe's largest economy shrank by 0.3% in the last three months of 2023 while the bloc as a whole saw steady output, helped by expansions in Spain and Italy.
Japan Dec factory output rises on production machinery Japan's industrial output rose in December, government data showed on Wednesday, lifted by machinery production although a safety scandal at Toyota 's small-car unit threatened to weigh heavily on future output. Industrial production rose 1.8% in December from the previous month, data from the Ministry of Economy, Trade and Industries (METI) data showed. The reading was below the median market forecast for a 2.4% rise followed by 0.9% contraction in November. General-purpose and business-oriented machinery output jumped 9.3% in December from the previous month. Strong demand for conveyer belts and testing equipment contributed to the increase. Production machinery also went up 4.3% month-on-month in December. The output of semiconductor manufacturing equipment increased 6.2% while exports to China, South Korea and Taiwan rose.
BOJ made hawkish tilt in January, debated stimulus exit scenarios Bank of Japan policymakers discussed in January the likelihood of a near-term exit from negative interest rates and possible scenarios for phasing out the bank's massive stimulus program, a summary of opinions at the meeting showed on Wednesday. The summary highlights a growing view within the board that conditions were falling in place to soon pull short-term interest rates out of negative territory, which would be Japan's first interest rate hike since 2007. "It seems that conditions for policy revision, including the termination of our negative interest rate policy, are being met," one member was quoted as saying in the summary. Another opinion called for the BOJ to end negative rates "at an appropriate timing," as delaying the decision for too long could require subsequent interest rate hikes to be rapid.
Dollar mixed in tight trading range before Fed statement The 10-year government bond yield (interpolated) on the previous trading day was 2.64, -1.53 bps. The benchmark government bond yield (LB31DA) was 2.64, -1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.06, -2.00 bps. USDTHB on the previous trading day closed around 35.34 Moving in a range of 35.35-35.435 this morning. USDTHB could be closed between 35.25-35.50 today. The dollar edged lower against the euro and higher against the yen on Tuesday, but failed to find strong direction ahead of the conclusion of the Federal Reserve's two-day meeting. The US central bank is expected to leave interest rates unchanged on Wednesday and investors will focus on any clues from Fed Chairman Jerome Powell on the likelihood of a rate cut in March. Solid US economic data has led traders to pare bets of a March cut to a 42% probability, from around 89% a month ago, according to the CME Group's FedWatch Tool. The Fed may "feel more confident than they were in December that rates are restrictive enough to bring inflation down," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
