- USDTHB: moving in the range 35.54-35.58 this morning supportive level at 35.40 resistance level at 35.60
- SET Index: 1,290.6 (+1.29%), 7 Aug 2024
- S&P 500 Index: 5,199.5 (-0.78%), 7 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.607 (+4.39 bps), 7 Aug 2024
- US 10-year treasury yield: 3.96 (+6.0 bps), 7 Aug 2024
- BOJ deputy governor lowers odds of a near-term rate hike
- China's imports rise, but weak export growth raises concerns
- Thai inflation rose in July but stayed below the central bank's target
- Dollar rises slightly; yen falls as BOJ rules out further rate hikes
BOJ deputy governor lowers odds of a near-term rate hike
On Wednesday, Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank will not raise interest rates during market instability, diminishing the likelihood of a near-term rate hike. His comments, which differed from Governor Kazuo Ueda's recent hawkish stance and unexpected rate increase, led to a boost in Japan's Nikkei share average and a sharp drop in the yen. Uchida noted that recent market volatility could influence the BOJ’s rate decisions if it impacts economic forecasts and the prospects of achieving Japan's 2% inflation target.
China's imports rise, but weak export growth raises concerns
In July, China's export growth slowed to its lowest rate in three months, falling short of expectations and raising concerns about the manufacturing sector. Exports increased by 7.0% year-over-year, down from June's 8.6% and below the anticipated 9.7% rise. Meanwhile, imports surged by 7.2%, rebounding from a 2.3% decline in June and exceeding the forecasted 3.5% increase, driven by efforts to stockpile chips before anticipated U.S. tech restrictions.
Thai inflation rose in July but stayed below the central bank's target
Thailand's annual headline inflation rate accelerated in July due to rising energy and food prices, yet it stayed within the central bank's target range of 1% to 3%. The headline consumer price index (CPI) climbed by 0.83% in July compared to a year earlier, up from a 0.62% increase in June and surpassing the expected 0.70% rise. For the first seven months of 2024, the average annual headline inflation was 0.11%, with the commerce ministry maintaining its full-year forecast of between 0% and 1%. Core CPI, which excludes fresh food and energy costs, rose 0.52% year-over-year and increased by 0.42% during the first seven months of 2024 compared to the same period the previous year.
Dollar rises slightly; yen falls as BOJ rules out further rate hikes
The 10-year government bond yield (interpolated) on the previous trading day was 2.607, +4.39 bps. The benchmark government bond yield (LB346A) was 2.61, +6.00 bps. Meantime, the latest closed US 10-year bond yields was 3.96, +6.0 bps. USDTHB on the previous trading day closed around 35.62 moving in a range of 35.54 – 35.58 this morning. USDTHB could be closed between 35.40 - 35.60 today. The Dollar Index edged up on Wednesday, boosted by Japanese yen weakness following comments from BoJ Deputy Governor Uchida. Overall, dollar-specific news was sparse due to lighter trading conditions, with no significant Fed updates or major US data. The yen lagged behind other G10 currencies, reversing some recent gains after Uchida's dovish remarks, where he indicated that rates wouldn't be raised amidst market instability and that current monetary easing would continue. The Euro and the British Pound remained within narrow ranges, trading between 1.0906-36 and 1.2681-1.2735, respectively, amid minimal currency news.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
