- USDTHB: moving in the range 36.62-36.665 this morning supportive level at 36.40 resistance level at 36.70
· SET Index: 1,362.4 (-0.27%), 28 May 2024
· S&P 500 Index: 5,306.0 (+0.02%), 28 May 2024
· Thai 10-year government bond yield (interpolated): 2.78 (-1.68 bps), 28 May 2024
· US 10-year treasury yield: 4.54 (+8.00 bps), 28 May 2024
- US consumer confidence recovers; inflation worries persist
- Euro zone consumers lower inflation expectation, ECB survey shows
- BOJ's underlying inflation measures in April all fall below 2%
- Dollar rebounds as yields rise, consumer confidence improves
US consumer confidence recovers; inflation worries persist US consumer confidence unexpectedly improved in May after deteriorating for three straight months amid optimism about the labor market, but worries about inflation persisted and many households expected higher interest rates over the next year. The Conference Board said that its consumer confidence index increased to 102.0 this month from an upwardly revised 97.5 in April. Economists polled by Reuters had forecast the index slipping to 95.9 from the previously reported 97.0. It outperformed the University of Michigan's sentiment index. Confidence remains within the relatively narrow range it has been hovering in for more than two years. The improvement was across all age groups, with consumers making annual incomes over $100,000 posting the largest increase in confidence.
Euro zone consumers lower inflation expectation, ECB survey shows Euro zone consumers lowered their inflation expectations last month, a fresh European Central Bank survey showed on Tuesday, just as the bank was making plans to start rolling back a record string of interest rate hikes. Expectations for inflation in the next 12 months eased to 2.9% from 3.0% a month earlier to hit their lowest level since September 2021. Meanwhile expectations for inflation three years out slipped to 2.4% from 2.5%, still far above the ECB's 2% target. Inflation has come down quickly in the past year to hit 2.4% last month but the ECB now sees it oscillating around its current level for the rest of the year before disinflation kicks in again and the target is reached in 2025.
BOJ's underlying inflation measures in April all fall below 2% Bank of Japan's key measurements of underlying inflation in April all fell below its 2% target for the first time since August 2022, data showed on Tuesday, heightening uncertainty on the timing of its next interest rate hike. The weighted median inflation rate, among the three indicators closely watched as a gauge on whether price rises are broadening, rose 1.1% in April from a year earlier after a 1.3% gain in March, the data showed. The trimmed mean index, which excludes the upper and lower tails of the price change distribution, rose 1.8% in April from a year earlier, slowing from the previous month's 2.2%, the data showed. A third index that measures the inflation rate with the highest density in the distribution also rose 1.6% in April, slowing from the previous month's 1.9% gain, it showed.
Dollar rebounds as yields rise, consumer confidence improves The 10-year government bond yield (interpolated) on the previous trading day was 2.78, -1.68 bps. The benchmark government bond yield (LB31DA) was 2.81, -2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.54, +8.00 bps. USDTHB on the previous trading day closed around 36.57. Moving in a range of 36.62-36.665 this morning. USDTHB could be closed between 36.40-36.70 today. The dollar gained, giving back earlier losses, as benchmark US Treasury yields hit a four-week high following some weak auctions. The Treasury Department saw soft demand for sales of two-year and five-year notes. They came after data showed that US consumer confidence unexpectedly improved in May after deteriorating for three straight months. US economic data was better than expected in the first quarter and so far there are no major signs of deterioration in areas such as the labor market, which some traders are waiting on before taking a more bearish view on the greenback. Concerns that inflation will remain stubbornly above the Fed’s target for longer are also providing some support for the US currency. Tuesday’s data showed that worries about inflation persisted, and many households expected higher interest rates over the next year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
