- USDTHB: moving in the range 33.985-34.00 this morning supportive level at 33.90 resistance level at 34.10
- SET Index: 1,190.4 (+0.5%), 26 Mar 2025
- S&P 500 Index: 5,712.2 (-1.1%), 26 Mar 2025
- Thai 10-year government bond yield (interpolated): 2.074 (-0.91 bps), 26 Mar 2025
- US 10-year treasury yield: 4.35 (+4.0 bps), 26 Mar 2025
- Trump hits auto imports with 25% tariff starting next week
- Durable goods orders demonstrate unexpected strength
- UK inflation slows down unexpectedly, offering a boost for potential rate cuts
- The dollar rises on tariff news
Trump hits auto imports with 25% tariff starting next week
President Trump signed a proclamation imposing a 25% tariff on auto imports, effective April 2, including key auto parts like engines and transmissions. He called the tariffs "permanent" with no exceptions. Reports also suggest Trump may impose copper tariffs soon, while the EU expects a 20% tariff next week, though no final decision has been made. Politico speculated the tariff rate on the EU could reach 20-25%.
Durable goods orders demonstrate unexpected strength
Durable goods rose 0.9% in February, beating the -1.0% forecast and adding to January’s 3.3% increase. The ex-defense measure rose 0.8%, and ex-transportation rose 0.7%, both surpassing expectations. These strong numbers suggest orders are still flowing ahead of tariff changes, with steel and aluminum tariffs taking effect on March 12th. Economists notes the tariff effects likely boosted core durable goods orders.
UK inflation slows down unexpectedly, offering a boost for potential rate cuts
CPI rose 2.8% in February compared to a year earlier, down from 3% in January and below the 3% economists expected. This was in line with the Bank of England's (BOE) forecast of 2.8%. The slowdown was mainly driven by lower clothing prices and easing goods inflation. Services inflation remained at 5%, slightly below the predicted 5.1%. Core inflation, excluding food, alcohol, tobacco, and energy, dropped to 3.5% from 3.7%. While the decline in inflation is likely temporary, the BOE expects it to rise toward 4% later this year due to energy and other administered prices. However, Governor Andrew Bailey suggested that easing pressures should allow for a gradual decline in interest rates.
The dollar rises on tariff news
The 10-year government bond yield (interpolated) on the previous trading day was 2.074, -0.91 bps. The benchmark government bond yield (LB353A) was 2.07, -3.0 bps. Meantime, the latest closed US 10-year bond yields was 4.35, +4.0 bps. USDTHB on the previous trading day closed around 33.95, moving in a range of 33.985 – 34.00 this morning. USDTHB could be closed between 33.90 – 34.10 today. The dollar gained strength following tariff-related news, stronger-than-expected durable goods data, and a negative risk sentiment. This pushed the index above 104.50, reaching new session highs. The euro was pressured by the tariff threat, with EU Trade Chief Sefcovic expecting President Trump to impose tariffs of around 20% on the bloc next week, affecting all 27 member states. The British pound weakened after softer-than-expected UK CPI data and attention on Chancellor Reeves’s Spring Statement, which did not include further tax hikes. The Japanese yen struggled as the risk-off mood favored the dollar as a safer bet, with US yields rising across the curve. BoJ Governor Ueda’s comments had little impact on USD/JPY, which remains around 150.50.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
