- USDTHB: moving in the range 32.675-32.75 this morning supportive level at 32.60 resistance level at 32.80
- SET Index: 1,461.6 (-0.04%), 25 Sep 2024
- S&P 500 Index: 5,722.3 (-0.2%), 25 Sep 2024
- Thai 10-year government bond yield (interpolated): 2.473 (-2.10 bps), 25 Sep 2024
- US 10-year treasury yield: 3.79 (+5.00 bps), 25 Sep 2024
- U.S. new home sales drop less than expected, with the median price also falling
- July minutes show BOJ policymakers split on future rate hike pace
- China central bank cuts medium-term loan rate
- Thailand's August exports exceed expectations; 2% annual target maintained despite baht strengthening
- The dollar rebounded from a 14-month low against the euro
U.S. new home sales drop less than expected, with the median price also falling
New U.S. single-family home sales fell less than expected in August, decreasing 4.7% to a seasonally adjusted annual rate of 716,000 units. July's sales were revised up to 751,000, along with upward adjustments for May and June. Economists had predicted a drop to 700,000 units. The median new home price fell 4.6% to $420,600, with most sales in the $300,000 to $499,999 range.
July minutes show BOJ policymakers split on future rate hike pace
Minutes from the Bank of Japan's July meeting indicated that policymakers were split on the speed of future interest rate hikes, reflecting uncertainty about when the next increase in borrowing costs will occur. The report revealed that at least two of the nine board members supported further interest rate hikes, while others urged caution due to economic risks, highlighting a divide on future policy. During the July meeting, The BOJ raised short-term rates to 0.25% and announced plans to reduce its bond purchases, moving closer to ending years of major stimulus.
China central bank cuts medium-term loan rate
On Wednesday, China's central bank reduced the interest rate on its medium-term loans to banks as part of broader policy easing measures aimed at supporting the struggling economy. The People's Bank of China (PBOC) reduced the rate on 300 billion yuan ($42.66 billion) in one-year medium-term lending facility (MLF) loans from 2.30% to 2.00%, marking the largest cut since 2016. The PBOC also allowed banks to bid on MLF loans based on interest rates rather than amounts and published the highest and lowest bidding rates for the first time at 2.3% and 1.9%, respectively.
Thailand's August exports exceed expectations; 2% annual target maintained despite baht strengthening
In August, Thailand's exports rose 7.0% year-on-year, exceeding the 5.8% forecast and following a 15.2% increase in July. Imports also grew by 8.9%, surpassing the predicted 7.3%. This led to a trade surplus of $260 million, contrasting with an expected deficit of $70 million. Over the first eight months of 2024, exports increased by 4.2% and imports by 5.2%, resulting in a cumulative trade deficit of $6.35 billion. The Ministry of Commerce continues to forecast 1-2% growth for the year, even as the baht reaches its highest value against the US dollar in 30 months.
The dollar rebounded from a 14-month low against the euro
The 10-year government bond yield (interpolated) on the previous trading day was 2.473, -2.10 bps. The benchmark government bond yield (LB346A) was 2.47, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 3.79, +5.00 bps. USDTHB on the previous trading day closed around 32.65 moving in a range of 32.675 – 32.75 this morning. USDTHB could be closed between 32.60 – 32.80 today. The dollar gained strength, pushing the dollar index close to the 101.00 mark amid safe-haven demand following notable escalations in the Middle East, while the economic data calendar remained light with no major releases. The euro declined against the stronger dollar after a brief attempt to hold above the 1.1200 level. Meanwhile, the Japanese yen weakened during the U.S. session, with USD/JPY nearing the 145.00 mark due to the dollar's resurgence.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
