- USDTHB: moving in the range 34.065-34.13 this morning supportive level at 34.00 resistance level at 34.30
- SET Index: 1,328.1 (+0.36%), 20 Aug 2024
- S&P 500 Index: 5,597.1 (-0.20%), 20 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.571 (+2.62 bps), 20 Aug 2024
- US 10-year treasury yield: 3.82 (-4.0 bps), 20 Aug 2024
- Fed's Bowman cautious on rate cuts amid inflation risks
- Japan's exports soar, signaling economic recovery
- Canada's inflation fell to a 40-month low of 2.5% in July
- Taiwan’s July export orders surpassed forecasts on AI chip demand
- Dollar hits 7-month low before Powell
Fed's Bowman cautious on rate cuts amid inflation risks
On Tuesday, Federal Reserve Governor Michelle Bowman remained cautious about cutting interest rates and warned against reacting too strongly to recent easing inflation data, citing persistent upside risks. She also minimized concerns about July's labor market weakness, explaining that the rise in unemployment was largely due to temporary layoffs, with affected workers expected to be rehired soon.
Japan's exports soar, signaling economic recovery
In July, Japan's exports surged by 10.3% due to a weak yen and stronger automotive sales, up from 5.4% the previous month. This growth closely matched the 11.5% forecasted increase. Imports rose by 16.6%, exceeding the 14.6% prediction, leading to a $4.3 billion trade deficit. This export boost may ease concerns for the Bank of Japan, which is dealing with economic and market volatility following recent rate hikes and cautious statements from Governor Kazuo Ueda. Additionally, vehicle exports showed signs of recovery after earlier safety certification issues.
Canada's inflation fell to a 40-month low of 2.5% in July
Canada's annual inflation rate dropped to a 40-month low of 2.5% in July, meeting expectations, and core inflation also eased, suggesting the Bank of Canada may cut interest rates again in September. The consumer price index rose by 0.4% monthly, in line with forecasts. This July slowdown in inflation was mainly due to reduced costs for travel tours, passenger vehicles, and electricity.
Taiwan’s July export orders surpassed forecasts on AI chip demand
Taiwan's export orders exceeded expectations in July, driven by strong demand for AI-related chips, with the government anticipating this trend to continue into August. Orders surged 4.8% year-over-year to $50.03 billion, surpassing the 2.6% increase forecast and June's 3.1% rise. Taiwan, home to major tech firms like chipmaker TSMC, serves as a key indicator of global tech demand. Additionally, Orders from China dipped slightly by 0.1%, in contrast to a 3.5% increase the previous month, while orders from the United States rose 14.3%, up from a 3.7% gain in June.
Dollar hits 7-month low before Powell
The 10-year government bond yield (interpolated) on the previous trading day was 2.571, +2.62 bps. The benchmark government bond yield (LB346A) was 2.565, +2.5 bps. Meantime, the latest closed US 10-year bond yields was 3.82, -4.0 bps. USDTHB on the previous trading day closed around 34.29 moving in a range of 34.065 – 34.13 this morning. USDTHB could be closed between 34.00 - 34.30 today. The Dollar Index fell for the third consecutive day in a quiet news session, dropping to 101.39, just above the year-to-date low of 101.29. The Euro, along with other G10 currencies, benefited from the weaker dollar, with EUR/USD rising above 1.11 for the first time this year. Meanwhile, the Japanese yen performed well within the G10, supported by the weaker dollar and reduced yield differentials, as USD/JPY dropped to the lower end of the 145 range.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
