- USDTHB: moving in the range 35.45-35.57 this morning supportive level at 35.35 resistance level at 35.65
· SET Index: 1,397.0 (+0.94%), 6 Feb 2024
· S&P 500 Index: 4,954.2 (+0.23%), 6 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.64 (-2.24 bps), 6 Feb 2024
· US 10-year treasury yield: 4.09 (-8.00 bps), 6 Feb 2024
- Euro zone consumers trim near-term inflation expectations
- German industrial orders post surprise rise in December
- Japan's Dec real wages, household spending fall again
- Dollar on defensive after pullback from nearly 3-month peak
Euro zone consumers trim near-term inflation expectations Euro zone consumers have trimmed their expectations for inflation over the next 12 months, a European Central Bank poll showed, in a sign the ECB's credit-tightening efforts are having an impact. The Consumer Expectations Survey (CES) is used by policymakers to gauge whether the steepest streak of interest-rate hikes in the euro's history has persuaded households that once runaway inflation will fall back to the ECB's 2% inflation goal. The latest poll, carried out in December on an expanded panel of 11 countries, showed the median household expected prices to rise by 3.2% in the following 12 months, down from 3.5% a month earlier. On the flipside, expectations for inflation three years ahead remained slightly above the ECB's goal, even rising slightly to 2.5% from 2.4%.
German industrial orders post surprise rise in December German industrial orders unexpectedly jumped in December, posting their highest month-on-month increase in more than three years, driven by "an exceptionally" high number of aircraft orders. Orders rose by 8.9% on the previous month on a seasonally and calendar adjusted basis, the largest increase since June 2020. A Reuters poll of analysts had expected industrial orders to remain flat. Plane orders boosted the "other vehicle construction" category, which includes aircraft, ships and trains and saw an increase in orders of 110.9% on the month. Large orders in the manufacture of metal products (+18.0%) and manufacture of electrical equipment (+38.7%) also had a positive impact on the overall result.
Japan's Dec real wages, household spending fall again Japan's real wages fell for a 21st straight month though at a slower pace, while household spending dropped for a tenth consecutive month, showing that inflation outpaced wage recovery and continued to weigh on consumer spending. Japan's wage trend, along with inflation, is closely watched, with the Bank of Japan regarding both indicators among the key data to consider in preparation for phasing out its massive stimulus policy. Prime Minister Fumio Kishida has repeatedly called for business leaders to increase wages at spring labour negotiations to a level higher than last year's to beat inflation. Japan needs price increases to be propelled by demand and higher pay, instead of the cost-push inflation led by energy prices and a weak yen.
Dollar on defensive after pullback from nearly 3-month peak The 10-year government bond yield (interpolated) on the previous trading day was 2.64, -2.24 bps. The benchmark government bond yield (LB31DA) was 2.66, -3.00 bps. Meantime, the latest closed US 10-year bond yields was 4.09, -8.00 bps. USDTHB on the previous trading day closed around 35.72 Moving in a range of 35.45-35.57 this morning. USDTHB could be closed between 35.35-35.65 today. The dollar remained under pressure after retreating from a nearly three-month high against the euro in the previous session with a decline in US bond yields adding to the drag. Analysts pointed to technical factors for the dollar's pullback, following a two-day rally of as much as 1.4% against the euro after unexpectedly strong US jobs data and more hawkish rhetoric from Federal Reserve Chair Jerome Powell scuppered bets for an early interest rate cut. US Treasury yields also turned down from highs overnight on solid demand at a sale of new three-year notes, removing some support for the dollar. The dollar was little changed at $1.0755 per euro in early Asia trade on Wednesday, after retreating 0.1% on Tuesday, when it had earlier touched the strongest level since Nov. 14 at $1.0722.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
