- USDTHB: moving in the range 35.59-35.685 this morning supportive level at 35.55 resistance level at 35.75
- SET Index: 1,384.1 (+1.17%), 2 Feb 2024
- S&P 500 Index: 4,958.6 (+1.06%), 2 Feb 2024
- Thai 10-year government bond yield (interpolated): 2.64 (+0.26 bps), 2 Feb 2024
- US 10-year treasury yield: 4.02 (+16.00 bps), 2 Feb 2024
- US labor market sizzles with blowout job growth, solid wage gains
- US factory orders rise moderately in December
- Japan's January service activity surges on strong demand, weak yen
- Dollar jumps, traders pare rate cut bets after strong jobs report
US labor market sizzles with blowout job growth, solid wage gains US job growth accelerated in January and wages increased by the most in nearly two years, signs of persistent strength in the labor market that could make it difficult for the Federal Reserve to start cutting interest rates in May as currently envisaged by financial markets. Nonfarm payrolls increased by 353,000 jobs last month, the largest gain in a year, the Labor Department's Bureau of Labor Statistics said. The economy added 126,000 more jobs in November and December than previously reported. Payrolls shrugged off the drag from winter storms, which reduced the average workweek. Though annual "benchmark" revisions showed 266,000 fewer jobs were created in the 12 months through March 2023 than previously reported, employment gains last year totaled 3.1 million. Before the revisions, the job count for 2023 had been estimated at 2.7 million.
US factory orders rise moderately in December New orders for US-made goods rose just moderately in December, but a pick up is likely in the months ahead as unfilled orders continued to pile up. Factory orders gained 0.2% after rebounding 2.6% in November. The increase was in line with economists' expectations. Orders increased 0.8% on a year-on-year basis in December. Manufacturing, which accounts for 10.3% of the economy, is being constrained by high interest rates. The outlook is, however, promising. The Federal Reserve left interest rates unchanged on Wednesday. Fed Chair Jerome Powell told reporters that rates had peaked and would move lower in coming months. The Institute for Supply Management's manufacturing PMI neared the recovery zone in January. Shipments of manufactured goods were unchanged. Manufactured goods inventories edged up 0.1%, while unfilled orders increased 1.3% after rising by the same margin in November.
Japan's January service activity surges on strong demand, weak yen Japan's January service activity expanded at the strongest pace since September, supported by robust demand and the weak yen, while international demand jumped for the first time in five months. The service sector, which accounts for around 70% of the country's gross-domestic product (GDP), has been a bright spot for the world's third-largest economy, helping offset some of the drag on manufacturers from weak global demand. The final au Jibun Bank Service purchasing managers' index (PMI) rose to 53.1 in January from 51.5 in December, marking the 17th consecutive month of growth, according to index publisher S&P Global Intelligence. It exceeded the flash reading of 52.7 and remained above the 50.0 threshold separating expansion from contraction on a monthly basis.
Dollar jumps, traders pare rate cut bets after strong jobs report The 10-year government bond yield (interpolated) on the previous trading day was 2.64, +0.26 bps. The benchmark government bond yield (LB31DA) was 2.62, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.03, +16.00 bps. USDTHB on the previous trading day closed around 35.32 Moving in a range of 35.59-35.685 this morning. USDTHB could be closed between 35.55-35.75 today. The US dollar index jumped to a seven-week high in a broad rally on Friday after data showed that employers added far more jobs in January than expected, reducing the chances of near-term Federal Reserve interest rate cuts. Nonfarm payrolls increased by 353,000 last month, beating economists' expectations for a gain of 180,000. Average hourly earnings increased 0.6% after rising 0.4% in December. The dollar had weakened in recent days in line with falling Treasury yields, even after Fed Chair Jerome Powell on Wednesday said that a March rate cut was unlikely.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
