- USDTHB: moving in the range 36.71-36.75 this morning supportive level at 36.63 resistance level at 36.83
· SET Index: 1,298.3 (-0.43%), 20 June 2024
· S&P 500 Index: 5,473.2 (-0.25%), 20 June 2024
· Thai 10-year government bond yield (interpolated): 2.73 (-1.04 bps), 20 June 2024
· US 10-year treasury yield: 4.25 (+3.00 bps), 20 June 2024
- US Initial Jobless Claims were little changes and remained around 10-month high
- BOE leaves policy rate on hold, hinting at readiness for rate cut
- Japan’s inflation rose, backing case for BOJ rate hike
- Dollar extends gains against yen with US economic strength in focus
US Initial Jobless Claims were little changes and remained around 10-month high
Initial
claims decreased by 5,000 to 238,000 last week, following a 10-month high the
previous week, which exceeded market expectations of 235,000. The four-week
moving average rose to 232,750, the highest level since September.
Additionally, continuing claims, which indicate the number of people receiving
unemployment benefits, rose to 1.82 million as of June 8, lingering at the
highest level since the end of 2021
BOE leaves policy rate on hold, hinting at readiness for rate cut The Bank of England kept its main interest rate unchanged at 5.25% at its last meeting before July 4's UK election, but the prospect of a future rate cut moved closer as some policymakers said their thinking was now "finely balanced". The BoE's Monetary Policy Committee voted 7-2 on Thursday to keep rates on hold, in line with expectations. Deputy Governor Dave Ramsden and external MPC member Swati Dhingra were the only policymakers to support a cut to 5%.
Japan’s inflation rose, backing case for BOJ rate hike Japan’s inflation accelerated after the government increased renewable energy-related levies, supporting the case for the central bank to consider raising interest rates in the coming months. Consumer prices excluding fresh food rose 2.5% in May from a year ago, up from 2.2% in April. The reading was slightly below market expectations. However, inflation, which excludes fresh food and energy prices to gauge domestic demand, rose 2.1% in May from a year earlier, down from a 2.4% increase in April.
Dollar extends gains against yen with US economic strength in focus The 10-year government bond yield (interpolated) on the previous trading day was 2.73, -1.04 bps. The benchmark government bond yield (LB346A) was 2.76, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 4.25, +3.00 bps. USDTHB on the previous trading day closed around 36.71 moving in a range of 36.71-36.75 this morning. USDTHB could be closed between 36.63-36.83 today. The dollar strengthened throughout the session and was buoyed by rising US yields to reach an intraday peak of 105.655, while the dollar showed little care towards disappointing data namely higher-than-expected initial jobless claims. Sterling weakened in the aftermath of the BoE meeting where the policy rate was held at 5.25%. Yen was among the worst performers in the G10 FX space in which against dollar approached just shy of 159.00.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
