- USDTHB: moving in the range 33.08-33.13 this morning supportive level at 33.00 resistance level at 33.30
- SET Index: 1,454.8 (+1.3%), 19 Sep 2024
- S&P 500 Index: 5,713.6 (+1.7%), 19 Sep 2024
- Thai 10-year government bond yield (interpolated): 2.507 (-1.55 bps), 19 Sep 2024
- US 10-year treasury yield: 3.73 (+3.00 bps), 19 Sep 2024
- BoE maintains interest rates and prolongs its bond reduction program
- Weekly initial jobless claims increased less than anticipated
- Japan's CPI inflation reached a 10-month high in August
- The dollar fell in volatile trading after the Fed's major rate cut
BoE maintains interest rates and prolongs its bond reduction program
The Bank of England (BoE) kept interest rates steady at 5.0% on Thursday, with an 8-1 vote rather than the expected 7-2. Following a 25 basis point cut in August, the BoE plans a gradual approach to further reductions until inflation sustainably hits the 2.0% target. Governor Andrew Bailey cautioned that high wage growth and differing views on long-term inflation pressures pose challenges. The BoE forecasts inflation will rise to about 2.5% by year-end, up from 2.2%, but lower than the previous estimate of 2.75%, partly due to falling oil prices. Future changes will be assessed on a meeting-by-meeting basis. The BoE also announced a £100 billion reduction in government bonds over the next year, bringing the total to £558 billion.
Weekly initial jobless claims increased less than anticipated
The number of Americans filing for first-time unemployment benefits increased less than expected last week, indicating that the US labor market remains relatively strong, even after the Federal Reserve's first interest rate cut in over four years earlier this week. Initial jobless claims rose to 219,000 for the week ending September 14, up from a revised 231,000 the previous week, while economists had anticipated 230,000. Meanwhile, continuing claims, which reflect those receiving benefits after the initial week, decreased by 14,000 to a seasonally adjusted 1.829 million.
Japan's CPI inflation reached a 10-month high in August
Japanese consumer price index increased as expected in August, driven by ongoing consumption growth linked to higher wages, just ahead of a Bank of Japan meeting later that day. Core CPI, which excludes volatile fresh food prices, rose 2.8% year-on-year, reaching a 10-month high and up from 2.7% in July. A more focused core reading that excludes both fresh food and energy prices, closely monitored by the BOJ as an indicator of underlying inflation, climbed to 2% in August from 1.9% the previous month. Headline CPI inflation also increased to 3% in August, up from 2.8% in July.
The dollar fell in volatile trading after the Fed's major rate cut
The 10-year government bond yield (interpolated) on the previous trading day was 2.507, -1.55 bps. The benchmark government bond yield (LB346A) was 2.495, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 3.73, +3.00 bps. USDTHB on the previous trading day closed around 33.33 moving in a range of 33.08 – 33.13 this morning. USDTHB could be closed between 33.00 – 33.30 today. The dollar declined after the Fed's recent 50 basis point rate cut, which led to a day of increased risk-taking. Although various US data releases were better than anticipated, they did not lead to a lasting recovery for the greenback, with the dollar index remaining below the 101.00 mark. The euro gained from the weaker dollar, ignoring dovish remarks from ECB officials. The British pound benefited from the BoE's hawkish stance but lost some gains due to strong US data. Meanwhile, the Japanese yen weakened as risk appetite grew, although USD/JPY pulled back from intraday highs as the 144.00 level remained out of reach, with market participants now focused on upcoming Japanese inflation data and the conclusion of the BoJ's two-day policy meeting.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
