- USDTHB: moving in the range 36.065-36.175 this morning supportive level at 36.00 resistance level at 36.25
· SET Index: 1,385.1 (-0.48%), 14 Feb 2024
· S&P 500 Index: 5,000.6 (+0.95%), 14 Feb 2024
· Thai 10-year government bond yield (interpolated): 2.58 (+2.56 bps), 14 Feb 2024
· US 10-year treasury yield: 4.27 (-4.00 bps), 14 Feb 2024
- Fed still on track even if inflation's path down is bumpy
- Japan unexpectedly slips into recession, Germany now world's third-biggest economy
- Singapore's Q4 economy grows slower than first estimates
- US dollar drifts lower, consolidates gains; seen rising further
Fed still on track even if inflation's path down is bumpy The Federal Reserve's path back to its 2% inflation target rate would still be on track even if price increases run a bit hotter-than-expected over the next few months and the central bank should be wary of waiting too long before it cuts interest rates, Chicago Fed President Austan Goolsbee said. The Fed last month kept interest rates unchanged in the 5.25% to 5.50% target range, where it has been held since last July, as it seeks more confidence that the annual pace of price increases is on a sustainable path back down to 2%. US consumer prices rose more than expected in January, government data showed on Tuesday, amid a surge in the cost of rental housing. As a result, traders piled into bets the central bank will wait until June to start reducing the policy rate, and now expect three quarter-point cuts by year-end, in line with what Fed policymakers projected in December but less than the four or more rate cuts markets had priced in at the start of the week.
Japan unexpectedly slips into recession, Germany now world's third-biggest economy Japan unexpectedly slipped into a recession at the end of last year, losing its title as the world's third-biggest economy to Germany and raising doubts about when the central bank would begin to exit its decade-long ultra-loose monetary policy. Some analysts are warning of another contraction in the current quarter as weak demand in China, sluggish consumption and production halts at a unit of Toyota Motor (NYSE:TM) Corp all point to a challenging path to an economic recovery. Japan's gross domestic product (GDP) fell an annualised 0.4% in the October-December period after a 3.3% slump in the previous quarter, government data showed on Thursday, confounding market forecasts for a 1.4% increase.
Singapore's Q4 economy grows slower than first estimates Singapore's economy grew slower than initial estimates in the fourth quarter of last year, on downward revisions in construction and manufacturing but the city-state was still hopeful of a pick up in activity in 2024. Gross domestic product (GDP) rose 2.2% on a year-on-year basis in the fourth quarter, government data showed on Thursday, lower than an advance estimate of 2.8% released last month. The fourth-quarter expansion was also below the 2.5% in a Reuters poll of forecasts. On a quarter-on-quarter, seasonally-adjusted basis, GDP expanded 1.2% in the October-December period, compared with 1.7% in advanced estimates. The trade ministry maintained its GDP growth forecast for 2024 at 1.0% to 3.0%.
US dollar drifts lower, consolidates gains; seen rising further The 10-year government bond yield (interpolated) on the previous trading day was 2.58, +2.56 bps. The benchmark government bond yield (LB31DA) was 2.56, +2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.27, -4.00 bps. USDTHB on the previous trading day closed around 36.10 Moving in a range of 36.065-36.175 this morning. USDTHB could be closed between 36.00-36.25 today. The dollar slid from a fresh three-month high against a major currency basket on Wednesday, as investors consolidated gains following the previous session's hotter-than-expected US inflation report. The inflation data for January pushed back bets on a first Federal Reserve rate cut to the middle of the year. The greenback also weakened against the yen after Japan's top currency officials warned against what they described as rapid and speculative yen moves. The dollar eased 0.2% to 150.52 yen , not too far from a three-month peak hit against the Japanese currency. The US unit has added about 10 yen in price since the start of this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
