- USDTHB: moving in the range 34.15-34.275 this morning supportive level at 34.10 resistance level at 34.40
- SET Index: 1,088.2 (+1.3%), 9 Apr 2025
- S&P 500 Index: 5,456.9 (+9.1%), 9 Apr 2025
- Thai 10-year government bond yield (interpolated): 1.958 (+4.46 bps), 9 Apr 2025
- US 10-year treasury yield: 4.34 (+8.0 bps), 9 Apr 2025
- Trump pauses tariff hikes for 90 days, but raises tariff rates on China
- Minutes show Fed officials worried over stagflation risk
- EU adopts tariffs on €21 billion of US goods in metals fight
- The US dollar rebounded after President Trump announced a pause on tariffs
Trump pauses tariff hikes for 90 days, but raises tariff rates on China
President Trump announced a temporary 90-day suspension of reciprocal tariffs for countries currently engaged in trade negotiations with the US. During this period, tariff rates for these partners will revert to a baseline of 10%, allowing time for further discussions. However, tensions with China escalated after China increased its tariffs on U.S. goods from 34% to 84%. In response, Trump raised tariffs on Chinese imports from 104% to 125%. Regarding Canada and Mexico, a White House official confirmed that tariff levels will remain unchanged, as will tariffs on automobiles, steel, and aluminum more broadly. In addition, it is still unclear whether this exemption includes the European Union. While the EU Commission has announced plans to impose retaliatory tariffs of 10–25% on U.S. imports starting April 15th—having already secured approval from member states—it also stated that these measures could be suspended if the U.S. agrees to a fair and balanced deal.
Minutes show Fed officials worried over stagflation risk
The minutes from the March meeting showed unanimous agreement among participants to keep interest rates steady due to ongoing uncertainty about the economic outlook. Many highlighted that the unclear impact of government policies warranted a cautious stance, and believed the FOMC was in a good position to wait for more clarity. Some noted potential challenges if inflation remained high while growth and employment weakened. A few warned that a sudden shift in financial markets could worsen the effects of any negative economic shock. Most participants saw a risk that inflation could stay elevated longer than expected, with nearly all viewing inflation risks as skewed to the upside, while employment risks leaned downward.
EU adopts tariffs on €21 billion of US goods in metals fight
The EU approved tariffs on €21 billion ($23.2 billion) of U.S. goods in response to Trump’s 25% tariffs on EU steel and aluminum. Most EU countries backed the move, with some tariffs starting April 15, others in May and December. Targeted U.S. goods include soybeans, diamonds, poultry, motorcycles, and other politically sensitive items. Most will face 25% tariffs, with some at 10%. Bourbon was removed after Trump threatened 200% duties on European wine and other alcoholic beverages.
The US dollar rebounded after President Trump announced a pause on tariffs
The 10-year government bond yield (interpolated) on the previous trading day was 1.958, +4.46 bps. The benchmark government bond yield (LB353A) was 1.95, +3.0 bps. Meantime, the latest closed US 10-year bond yields was 4.34, +8.0 bps. USDTHB on the previous trading day closed around 34.80, moving in a range of 34.15 – 34.275 this morning. USDTHB could be closed between 34.10 – 34.40 today. The dollar strengthened after President Trump announced a 90-day pause on reciprocal tariffs for 75 countries. With trade dominating the day, the FOMC Minutes were less significant, and remarks from Fed speakers may seem outdated due to the tariff changes. Going forward, attention will remain on trade, US CPI, and upcoming remarks from Fed officials. The euro ended the day flat after retreating from resistance just below the 1.1100 level. Earlier, the EU had announced plans to impose countermeasures against the US, but Commerce Secretary Lutnick later suggested that the EU may delay its tariff retaliation following Trump’s 90-day pause announcement. Meanwhile, the Japanese yen weakened as risk appetite was boosted by Trump’s tariff pause, briefly pushing USD/JPY above 148.00.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
