- USDTHB: moving in the range 36.75-36.785 this morning supportive level at 36.70 resistance level at 36.90
· SET Index: 1,311.8 (-0.37%), 13 June 2024
· S&P 500 Index: 5,421.0 (+0.00%), 13 June 2024
· Thai 10-year government bond yield (interpolated): 2.77 (-1.32 bps), 13 June 2024
· US 10-year treasury yield: 4.24 (-7.00 bps), 13 June 2024
- U.S. producer prices unexpectedly decrease month-on-month in May
- Weekly initial jobless claims rise 242,000, more than expected
- Thai consumer confidence at 7-month low on slow growth, political uncertainty
- Dollar gains on hawkish Fed, even as inflation cools
U.S. producer prices unexpectedly decrease month-on-month in May
According to Labor Department data, U.S. producer prices unexpectedly decreased, dragged down in particular by a decline in the costs of gasoline, in the latest sign of cooling inflationary pressures in the world's largest economy. The producer price index (PPI) for final demand dipped by 0.2% last month, reversing an increase of 0.5% in April. Economists had called for an uptick of 0.1%. Prices for final demand goods were mostly driven lower by a 7.1% slump in gasoline prices, while the measures for diesel fuel, chicken eggs, and electric power also fell. Services sector prices, meanwhile, were unchanged after climbing by 0.6% in April. In the 12 months to May, the PPI figure moved up by 2.2%, decelerating from 2.3% in April and slower than projections for an uptick of 2.5%.
Weekly initial jobless claims rise 242,000, more than expected
The number of Americans filing for first-time unemployment benefits rose by more than anticipated last week, pointing to a cooling labor market. Initial jobless claims in the U.S. climbed to 242,000 in the week ended on June 8, an increase from a total of 229,000 in the prior week. Economists had forecast a consensus figure of 225,000. The four-week moving average, which attempts to account for variances in the weekly figure, edged higher to 227,000 from 222,250. The U.S. labor market had shown signs of cooling, potentially offering the U.S. Federal Reserve some leeway to start cutting interest rates from record levels, but the May jobs report at the start of the month changed the narrative.
Thai consumer confidence at 7-month low on slow growth, political uncertainty
Thai consumer confidence dropped for a third straight month in
May, falling to its lowest level since October last year on concerns over a
slow economic recovery and political uncertainty. The consumer index of the
University of the Thai Chamber of Commerce fell to 60.5 in May from 62.1 in
April. According to the statement, consumers were not confident about whether
the economy would recover quickly, especially when the current political
situation became uncertain, however, consumer confidence was likely to improve
if the government sped up budget disbursements and helped stimulate an economic
recovery in the second half of this year.
Dollar gains on hawkish Fed,
even as inflation cools
The 10-year government bond yield (interpolated) on the previous
trading day was 2.77, -1.32 bps. The benchmark government bond yield (LB346A)
was 2.77, -0.50 bps. Meantime, the latest closed US 10-year bond yields was
4.24, -7.00 bps. USDTHB on the previous trading day closed around 36.63. Moving
in a range of 36.75-36.785 this morning. USDTHB could be closed between
36.70-36.90 today. The dollar headed into the US PPI release slightly firmer,
but swiftly pared any gains in reaction to the softer-than-expected print,
highlighted by the Dollar Index reaching lows of 104.642. As the session
progressed, DXY regained its strength, almost removing all of Wednesday's gains
peaking at 105.459, shrugging off both the cooler-than-expected PPI and CPI,
with its strength perhaps fueled by the hawkish dot plot. The yen was on the
defensive on Friday ahead of a policy decision from the Bank of Japan that
could see it further reduce its massive monetary stimulus, while elsewhere the
euro, mired in political turmoil, was headed for a weekly loss.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
