- USDTHB: moving in the range 33.31-33.39 this morning supportive level at 33.20 resistance level at 33.50
- SET Index: 1,421.6 (+0.43%), 12 Sep 2024
- S&P 500 Index: 5,595.8 (+0.75%), 12 Sep 2024
- Thai 10-year government bond yield (interpolated): 2.556 (+0.70 bps), 12 Sep 2024
- US 10-year treasury yield: 3.68 (+3.00 bps), 12 Sep 2024
- US producer prices pick up slightly after downward revisions
- US jobless claims pick up for the first time in three weeks
- ECB delivers second rate cut of the year
- Hawkish BOJ policymaker calls for rates to rise to at least 1%
- The dollar was weighed on by the risk-on sentiment
US producer prices pick up slightly after downward revisions
US producer prices increased only slightly in August after July's figures were revised downward, with categories relevant to the Federal Reserve's preferred inflation measure showing little movement. The producer price index for final demand rose 0.2% from the previous month, following a flat July. This was higher than the 0.1% gain expected. On annual basis, the PPI climbed 1.7%, marking the smallest increase since early 2024. Excluding the more volatile food and energy sectors, the index rose 0.3% from the previous month and 2.4% from a year earlier. Within categories, costs for physician and hospital inpatient care remained unchanged, while airfares decreased by 0.8% as airlines adjusted to reduced discretionary travel spending.
US jobless claims pick up for the first time in three weeks
US unemployment benefit applications rose for the first time in three weeks, with initial claims increasing by 2,000 to 230,000 for the week ending September 7, surpassing the forecast of 226,000. Continuing claims also rose to 1.85 million for the week ending August 31. The four-week moving average increased to 230,750, marking its first rise in five weeks. Despite this increase, claims levels have remained relatively low, and there are no current signs of a labor market downturn.
ECB delivers second rate cut of the year
On Thursday, the European Central Bank cut interest rates by 25 basis points to 3.50% due to slowing inflation and faltering economic growth but offered little guidance on future policy. The ECB maintained its inflation forecasts and slightly raised projections for core inflation, while also noting easing labor cost pressures. The bank slightly downgraded its eurozone growth forecast, expecting reduced domestic demand. ECB President Christine Lagarde emphasized that future rate decisions will remain data-dependent.
Hawkish BOJ policymaker calls for rates to rise to at least 1%
On Thursday, hawkish BOJ policymaker Naoki Tamura called for raising interest rates to at least 1% by late next year, marking the first specific target set by a BOJ official. He suggested that Japan's economy is moving closer to achieving the BOJ's 2% inflation goal, which justifies a rate increase to a neutral level of around 1% by late 2025. Tamura's comments follow other BOJ board members' support for ongoing rate hikes despite recent market fluctuations.
The dollar was weighed on by the risk-on sentiment
The 10-year government bond yield (interpolated) on the previous trading day was 2.556, +0.70 bps. The benchmark government bond yield (LB346A) was 2.555, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 3.65, +0.00 bps. USDTHB on the previous trading day closed around 33.74 moving in a range of 33.31 – 33.39 this morning. USDTHB could be closed between 33.20 – 33.50 today. The dollar was pressured by a risk-on sentiment, with mixed PPI data and jobless claims aligning with expectations having minimal impact on the currency or on the prospects of a 25bps Fed rate cut next week. Meanwhile, the euro capitalized on the dollar's weakness, gradually rising from around the 1.1000 mark, despite the anticipated ECB rate cuts. The Japanese yen also gained from the weaker dollar, pushing USD/JPY below the 142.00 level.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
