- USDTHB: moving in the range 34.00-34.04 this morning supportive level at 33.80 resistance level at 34.10
- SET Index: 1,365.7 (+0.10%), 28 Aug 2024
- S&P 500 Index: 5,592.2 (-0.60%), 28 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.55 (+0.55 bps), 28 Aug 2024
- US 10-year treasury yield: 3.84 (+1.0 bps), 28 Aug 2024
- Fed's Bostic seeks more data before deciding on next month's rate cut
- BOJ's Himino confirms readiness to raise rates if economy supports it
- Australia's CPI exceeds expectations in July; core inflation drops
- Thai central bank chief signals caution on policy changes
- The Dollar experienced a significant increase on Wednesday
Fed's Bostic seeks more data before deciding on next month's rate cut
Federal Reserve Bank of Atlanta President Raphael Bostic noted that with inflation decreasing more than expected and unemployment rising beyond his forecasts, it might be time to consider rate cuts. However, he wants to be certain before making any decisions. Bostic indicated he will look for confirmation from the upcoming monthly jobs report and two inflation reports, which will be available before the Fed's meeting on September 17-18, to ensure the economic trends are consistent. Throughout most of this year, Bostic had anticipated that the Fed would only need to reduce rates once, likely in the fourth quarter. Recently, he has suggested that he might be open to initiating cuts sooner.
BOJ's Himino confirms readiness to raise rates if economy supports it
Bank of Japan Deputy Governor Ryozo Himino confirmed that the central bank will keep raising interest rates if inflation remains steady, while monitoring financial market conditions. His comments echoed Governor Kazuo Ueda's recent remarks, indicating that market volatility won't alter their rate hike plans. Himino emphasized the importance of closely watching unstable markets and assessing the impact of recent market changes, the July rate hike, and the U.S. economy on BOJ’s forecasts.
Australia's CPI exceeds expectations in July; core inflation drops
In July, Australia's CPI inflation rose to 3.5% year-on-year, above the expected 3.4% but down from 3.8% the previous month, mainly due to persistent fresh food costs. Core CPI, excluding volatile items, fell to 3.7% from 4% in June. The rise in overall inflation was driven by higher fresh food prices, while housing and energy costs decreased slightly. Inflation remains above the Reserve Bank of Australia's 2% to 3% target.
Thai central bank chief signals caution on policy changes
At a business forum, Bank of Thailand Governor Sethaput Suthiwartnarueput stated that the central bank's rate decisions are based on the economic outlook and can be adjusted as needed. He noted that the current 2.5% policy interest rate is among the lowest globally and attributed slow economic growth to structural issues. The BOT forecasts 2.6% growth for Thailand this year and 3% for 2025, with a uneven recovery. Sethaput emphasized the need for flexible policy to handle uncertainty and mentioned signs of declining credit quality and potential credit contraction among SMEs.
The Dollar experienced a significant increase on Wednesday
The 10-year government bond yield (interpolated) on the previous trading day was 2.55, +0.55 bps. The benchmark government bond yield (LB346A) was 2.545, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 3.84, +1.0 bps. USDTHB on the previous trading day closed around 33.99 moving in a range of 34.00 – 34.04 this morning. USDTHB could be closed between 33.80 - 34.10 today. On Wednesday, the Dollar rose notably from 100.59 to 101.17, outperforming other major currencies amid a risk-off sentiment as US stocks fell and with no major economic data. The Euro lagged, with EUR/USD dipping to 1.1106 but staying above 1.1100. The Japanese yen also weakened, despite recovering from its worst levels.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
