- USDTHB: moving in the range 33.305-33.35 this morning supportive level at 33.15 resistance level at 33.45
- SET Index: 1,465.03 (-0.3%), 15 Oct 2024
- S&P 500 Index: 5,815.26 (-0.76%), 15 Oct 2024
- Thai 10-year government bond yield (interpolated): 2.514 (-1.31 bps), 15 Oct 2024
- US 10-year treasury yield: 4.03 (-5.00 bps), 15 Oct 2024
- US considers imposing limits on AI chip Exports from Nvidia and AMD to certain countries
- Fed's Daly says central bank likely on track for more rate cuts
- NY Empire State Manufacturing Index plunges
- German investor confidence increases for first time since June
- US dollar is mostly flat as traders wait for stronger catalysts
US considers imposing limits on AI chip Exports from Nvidia and AMD to certain countries
Biden administration officials are considering caps on advanced AI chip sales from Nvidia and other U.S. companies, targeting specific countries for national security reasons. The focus is on Persian Gulf nations eager for AI data centers and able to finance them. These discussions are early and evolving, with recent momentum. This policy would complement new regulations aimed at simplifying the licensing process for chip exports to countries like the UAE and Saudi Arabia, with more rules expected soon.
Fed's Daly says central bank likely on track for more rate cuts
Fed's Daly expressed cautious optimism about the economic outlook, suggesting discussions of gradual rate cuts may be overstated. She deemed the recent 50 basis point cut appropriate and highlighted the balanced risks to the Fed's mandate. Looking ahead, she expects one or two more rate cuts this year if forecasts hold. She noted there’s room to reduce the balance sheet further but emphasized careful monitoring of the markets. While recognizing the costs of a large balance sheet, she stressed the importance of a gradual policy approach during uncertain times.
NY Empire State Manufacturing Index plunges
The NY Fed Manufacturing Survey for October fell sharply to -11.9, far below the expected 3.85 and September's 11.5. The decline was driven by a significant drop in New Orders to -10.2 from 9.4, marking the lowest level since May. General Business Conditions and Shipments also decreased notably. However, Prices Paid rose to 29 from 23.2, and employment increased from 4.1 to 9.8. Looking ahead, six-month expectations showed a slight dip in Prices Paid but an improvement in general business conditions.
German investor confidence increases for first time since June
Investor confidence in Germany's economy increased for the first time in four months, driven by the expectation that borrowing costs will decline more rapidly than earlier thought. The ZEW institute's expectations index rose to 13.1 in October, up from 3.6 in September, surpassing economists' prediction of 10. However, a measure of current conditions unexpectedly deteriorated. Optimism is fueled by expectations of stable inflation rates and the potential for further interest rate cuts by the European Central Bank.
US dollar is mostly flat as traders wait for stronger catalysts
The 10-year government bond yield (interpolated) on the previous trading day was 2.514, -1.31 bps. The benchmark government bond yield (LB346A) was 2.51, -1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.03, -5.00 bps. USDTHB on the previous trading day closed around 33.35 moving in a range of 33.305 – 33.35 this morning. USDTHB could be closed between 33.15 – 33.45 today. The dollar ended the day flat amid volatile trading, receiving early support from a subdued risk appetite and remarks from former President Trump that revived typical enthusiasm for tariffs. However, gains were limited as traders also considered weak Empire Manufacturing data. The euro slightly declined against the dollar, unable to maintain the 1.0900 level despite generally positive data, with focus this week on Thursday's ECB policy meeting. The Japanese yen performed well, with USD/JPY briefly dropping below the 149.00 mark due to lower U.S. yields.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
