- USDTHB: moving in the range 35.73-35.79 this morning supportive level at 35.55 resistance level at 35.85
· SET Index: 1,383.9 (-0.01%), 5 Feb 2024
· S&P 500 Index: 4,942.8 (-0.32%), 5 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.67 (+2.76 bps), 5 Feb 2024
· US 10-year treasury yield: 4.17 (+14.00 bps), 5 Feb 2024
- US service sector growth picks up in January
- Euro zone economy showing some signs of recovery
- German exports disappoint in December on weak global demand
- Dollar surges to 11-week high as Fed rate cut bets diminish
US service sector growth picks up in January The US services sector growth picked up in January as new orders increased and employment rebounded, but suppliers appeared to fall behind, resulting in a measure of input prices rising to an 11-month high. The Institute for Supply Management (ISM) said on Monday that its non-manufacturing PMI increased to 53.4 last month from 50.5 in December. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the index rising to 52.0. The report added to January's blowout employment gains in suggesting that economic growth momentum from the fourth quarter spilled over into the new year. It also further diminished the chances of an interest rate cut in March.
Euro zone economy showing some signs of recovery The euro zone economy showed tentative signs of recovery at the start of the year, according to a survey which showed rising inflationary pressures, bolstering the European Central Bank's case for keeping interest rates at record highs. HCOB's composite PMI for the bloc, compiled by S&P Global and seen as a good guide of overall economic health, rose to 47.9 in January from December's 47.6, matching a preliminary estimate. That was its best reading since July but remained below the 50-mark separating growth from contraction. Survey also indicated both input and output costs rose faster last month and while an index measuring demand did rise, it was still firmly below breakeven.
German exports disappoint in December on weak global demand German exports fell more than expected in December due to weak global demand, underlining concerns about the health of Europe's biggest economy that may be slipping back into recession. Germany's ailing economy had a bumpy start to the year with exports sinking, farmers launching nationwide protests, train drivers striking for days and heated debates among coalition partners on how to foster economic growth. Exports fell by 4.6% in December compared with the previous month. The result compared with a forecast 2.0% decrease in a Reuters poll. Exports to EU countries fell by 5.5% compared with the previous month, while exports to countries outside the EU declined by 3.5%. Imports fell by 6.7% from November, the federal statistics office reported, versus analysts' expectations for a 1.5% decline.
Dollar surges to 11-week high as Fed rate cut bets diminish The 10-year government bond yield (interpolated) on the previous trading day was 2.67, +2.76 bps. The benchmark government bond yield (LB31DA) was 2.63, +3.00 bps. Meantime, the latest closed US 10-year bond yields was 4.17, +14.00 bps. USDTHB on the previous trading day closed around 35.70 Moving in a range of 35.73-35.79 this morning. USDTHB could be closed between 35.55-35.85 today. The dollar climbed to its highest in almost three months against nine other major currencies as traders slashed bets the Federal Reserve would aggressively cut interest rates this year after new economic data further diminished those odds. US services sector growth picked up in January as new orders increased and employment rebounded, the Institute for Supply Management (ISM) said, suggesting economic growth momentum from the fourth quarter spilled over into the new year. ISM's non-manufacturing PMI increased to 53.4 from 50.5 in December, higher than 52.0 that economists polled by Reuters had forecast. A reading above 50 indicates growth in the services industry, which drives more than two-thirds of the economy. The data added to Friday's blockbuster US jobs report that far exceeded expectations and forced the market to readjust its outlook for rate cuts.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
