- USDTHB: moving in the range 34.46-34.53 this morning supportive level at 34.30 resistance level at 34.60
- SET Index: 1,341.0 (+0.24%), 22 Aug 2024
- S&P 500 Index: 5,570.6 (-0.90%), 22 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.562 (-0.73 bps), 22 Aug 2024
- US 10-year treasury yield: 3.86 (+7.0 bps), 22 Aug 2024
- U.S. business activity declines slightly
- US jobless benefits edged up slightly last week
- Eurozone business activity in August was unexpectedly robust
- Japan's core CPI rose as expected in July, but underlying inflation was weak
- Dollar rebounds against euro before Powell speech
U.S. business activity declines slightly
In August, U.S. business activity fell to its lowest level in four months. The Flash U.S. composite PMI slightly decreased to 54.1 from 54.3 in July but remains strong overall. Manufacturing activity dropped to 48, the steepest decline this year, due to reduced production and orders. Conversely, the Flash Services PMI rose to 55.2 from 55.0, exceeding expectations.
US jobless benefits edged up slightly last week
The initial jobless claims for the week corresponding with the BLS’ August payrolls report increased to 232,000 from 228,000, slightly surpassing the anticipated 230,000. The four-week average remained relatively stable at 236,000, compared to the previous 236,750. At the same time, continued jobless claims rose to 1.863 million from 1.859 million, although this was below the expected 1.867 million.
Eurozone business activity in August was unexpectedly robust
The eurozone economy received an unexpectedly strong boost from the Paris Olympics, accelerating private-sector growth to its fastest rate in three months. S&P Global’s composite Purchasing Managers’ Index (PMI) rose to 51.2 in August from 50.2 in July, surpassing even the most optimistic predictions. The services PMI reached its highest level since April, climbing to 53.3 from 51.9 and exceeding forecasts for no change. However, the region's manufacturing sector saw a deeper decline, with the manufacturing PMI falling to an eight-month low of 45.6 from 45.8 in July. Despite this, the output index edged up slightly to 45.7 from 45.6.
Japan's core CPI rose as expected in July, but underlying inflation was weak
In July, Japanese core consumer price index inflation increased as anticipated, but a decrease in underlying inflation—falling below the Bank of Japan’s target—has cast doubt on the central bank’s aggressive stance. Core CPI, which excludes volatile fresh food prices, rose by 2.7% year-over-year in July, up from 2.6% the previous month and in line with forecasts. However, the core CPI that strips out both fresh food and energy prices, a key measure of underlying inflation for the BOJ, dropped to 1.9% in July from 2.2% in June. This figure fell below the BOJ’s 2% target and is the lowest since September 2022. Meanwhile, headline CPI inflation increased by 2.8% in July.
Dollar rebounds against euro before Powell speech
The 10-year government bond yield (interpolated) on the previous trading day was 2.563, -0.73 bps. The benchmark government bond yield (LB346A) was 2.56, -0.5 bps. Meantime, the latest closed US 10-year bond yields was 3.86, +7.0 bps. USDTHB on the previous trading day closed around 34.34 moving in a range of 34.46 – 34.53 this morning. USDTHB could be closed between 34.30 - 34.60 today. The dollar broke its four-day losing streak, finding support around 101.00 after mixed US data eased concerns about an economic downturn and labor market issues. This shift in focus turned attention to Powell's remarks at Jackson Hole. The euro fell as the dollar strengthened, with EUR/USD testing the 1.1100 level and finding support. The Japanese yen weakened, with USD/JPY rising above 146.00 due to higher US yields.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
