- USDTHB: moving in the range 34.51-34.58 this morning supportive level at 34.40 resistance level at 34.70
- SET Index: 1,353.2 (+0.96%), 15 Jan 2025
- S&P 500 Index: 5,949.9 (+1.81%), 15 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.42 (+1.26 bps), 15 Jan 2025
- US 10-year treasury yield: 4.66 (-12.0 bps), 15 Jan 2025
- US consumer prices slows as expected in December
- UK inflation decrease provides relief to reeves after market downturn
- BOJ chief Ueda signals rate hike chance next week
- Bank Indonesia unexpectedly reduces interest rates to boost growth
- Dollar weaker as inflation eases; yen firms on BOJ talk
US consumer prices slows as expected in December
The Labor Department's Bureau of Labor Statistics reported that the US consumer price index (CPI) rose 2.9% on a yearly basis in December from 2.7% in November which in line with market expectations. On a monthly basis, the CPI rose 0.4%, following the 0.3% increase recorded in the previous month. The core CPI rose 3.2% on a yearly basis which below November’s gain and analysts’ estimates for a 3.3% increase. The monthly core CPI rose 0.2% in the last month of 2024, also 0.1 percentage point less than expected. On an annual basis, food climbed 2.5% in 2024 while energy nudged down by 0.5%. On one hand, shelter prices, which comprise about one-third of the CPI weighting, rose by 0.3% but were up 4.6% from a year ago, the smallest one-year gain since January 2022.
UK inflation decrease provides relief to reeves after market downturn
UK inflation unexpectedly slowed to 2.5% in December, easing from 2.6% in November and aligning with the Bank of England's forecast. This prompted traders to bet on interest rate cuts and calmed market concerns. The slowdown showed signs of easing underlying pressures, with services sector price growth falling to 4.4%, the lowest since March 2022. This decline was mainly driven by drops in volatile airfares and hotel prices. Additionally, core CPI inflation fell to 3.2% from 3.5%, below market predictions.
BOJ chief Ueda signals rate hike chance next week
Governor Kazuo Ueda said that The Bank of Japan (BOJ) will debate whether to raise interest rates next week, reiterating the bank's resolve to push up borrowing costs if the economy continues to improve. It was cited uncertainty over the domestic wage outlook and Trump's policies as reasons to hold off raising rates last month. Ueda has signaled readiness to raise rates further if broadening wage hikes underpin consumption and allow companies to keep hiking prices not just for goods but services.
Bank Indonesia unexpectedly reduces interest rates to boost growth
Indonesia's central bank unexpectedly cut its policy rate by 25 basis points to 5.75%, its first reduction since September, to support economic growth amid market volatility and a weakening rupiah. The move follows signs of slower-than-expected growth in Q4 2024 and a low inflation outlook through 2026. BI revised its 2024 growth forecast to slightly below 5%, and its 2025 outlook to 4.7%-5.5% from 4.8%-5.6%. Governor Perry Warjiyo signaled that more measures could follow to boost growth.
Dollar weaker as inflation eases; yen firms on BOJ talk
The 10-year government bond yield (interpolated) on the previous trading day was 2.42, +1.26 bps. The benchmark government bond yield (LB346A) was 2.41, +2.00. Meantime, the latest closed US 10-year bond yields was 4.66, -12.00 bps. USDTHB on the previous trading day closed around 34.74 Moving in a range of 34.51-34.58 this morning. USDTHB could be closed between 34.40-34.70 today. The Dollar Index was down 0.1% at 109.07, it hit a 26-month high of 110.17 on Monday. The dollar pared some losses against major peers but stayed weaker as cooler-than-expected data eased fears that inflation was accelerating and increased the chances the Federal Reserve could cut interest rates twice this year. Meanwhile, The yen strengthened on after comments from the Bank of Japan Governor Kazuo Ueda, who said the central bank would raise interest rates and adjust the degree of monetary support if improvements in the economy and price conditions continue.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
