- USDTHB: moving in the range 36.95-36.98 this morning supportive level at 36.80 resistance level at 37.10
· SET Index: 1,319.2 (+0.00%), 26 June 2024
· S&P 500 Index: 5,477.9 (+0.16%), 26 June 2024
· Thai 10-year government bond yield (interpolated): 2.7 (+1.51 bps), 26 June 2024
· US 10-year treasury yield: 4.32 (+9.00 bps), 26 June 2024
- US New home sales decline, while the supply reaches highest level in 16 years.
- US Banks pass Fed's stress test
- Australia inflation jumps to 6-month high in May, ramps up rate hike risks
- The yen weakened, reaching a 38-year high despite fears of intervention.
US New home sales decline, while
the supply reaches highest level in 16 years.
Sales of new U.S. single-family homes fell sharply in May to their lowest level
in six months, reflecting dampened demand due to a significant rise in mortgage
rates. According to the data, new home sales dropped by 11.3% to a seasonally
adjusted annual rate of 619,000 units. This marks the largest monthly decline
since September 2022. Economists surveyed had anticipated sales to reach
640,000 units. April's sales figures were revised upward to 698,000 units, a
nine-month high, from an initially reported 634,000 units. New home sales are
considered a leading indicator for the housing market as they are counted at
the contract signing stage.
US Banks pass Fed's stress test
The Federal Reserve's stress tests revealed that major US banks are strongly
positioned to endure a recession, maintaining capital levels above the required
minimums. All 31 banks successfully passed the stress tests, demonstrating
their ability to withstand severe economic scenarios. Despite reporting
increased losses compared to the 2023 stress tests due to riskier balance
sheets and higher expenses, this outcome has partly alleviated concerns about
the banking sector, particularly amidst challenges posed by elevated interest
rates affecting landlords.
Australia inflation jumps to
6-month high in May, ramps up rate hike risks
Australian consumer inflation surged to its highest level in six months in May,
with core prices also increasing for the fourth consecutive month. The
unexpected data caught traders by surprise, leading markets to raise the
likelihood of another interest rate hike later this year. The monthly consumer
price index (CPI) showed a 4.0% annual increase in May, up from 3.6% in April
and surpassing market expectations of 3.8%. The trimmed mean, a closely
monitored measure of core inflation, rose to 4.4% annually, marking its highest
level in six months and up from 4.1% previously.
The yen weakened, reaching a
38-year high despite fears of intervention.
The 10-year government bond yield (interpolated) on the previous trading day
was 2.7, +1.51 bps. The benchmark government bond yield (LB346A) was 2.685,
+1.5 bps. Meantime, the latest closed US 10-year bond yields was 4.32, +9.00
bps. USDTHB on the previous trading day closed around 36.61 moving in a range
of 36.95 - 36.98 this morning. USDTHB could be closed between 36.80-37.10
today. The dollar was firmer with DXY above the 106.00 level with little direct
catalyst behind the strength in the dollar but was more of a function of the
weakness in its peers. The Japanese yen weakened further on Thursday, surging
as high as 160.81 yen per dollar in morning trade. The USDJPY pair rose to its
highest levels in 38 years, surpassing thresholds that traders believed would
trigger intervention by the Japanese government. This occurred despite strong
warnings from Japan's top currency diplomat, Kanda, expressing serious concern
about the yen's rapid depreciation and indicating readiness to intervene if
necessary. Meanwhile, the euro softened and steadily retreated to beneath the
1.0700 handle against the buck as ECB officials continued to point to further
cuts this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
