- USDTHB: moving in the range 33.73-33.86 this morning supportive level at 33.60 resistance level at 33.95
- SET Index: 1,134.0 (+4.1%), 10 Apr 2025
- S&P 500 Index: 5,268.1 (-3.5%), 10 Apr 2025
- Thai 10-year government bond yield (interpolated): 1.975 (+1.65 bps), 10 Apr 2025
- US 10-year treasury yield: 4.40 (+6.0 bps), 10 Apr 2025
- Trump sees ‘transition problems’ with China tariffs at 145%
- US inflation unexpectedly slows down ahead of tariffs impact
- US weekly jobless claims see a slight increase
- China’s consumer deflation persists as trade war poses new risks
- The dollar drops amid increased uncertainty over tariffs
Trump sees ‘transition problems’ with China tariffs at 145%
President Donald Trump acknowledged that his tariffs might cause some "transition problems" but expressed confidence in his strategy. The White House confirmed that U.S. tariffs on China have risen to 145%, including a newly implemented 125% tariff aimed at addressing the trade deficit and punishing China for retaliatory actions. This comes on top of a 20% tariff introduced earlier over China’s involvement in fentanyl trafficking. Trump also reiterated his intention to reimpose significant "reciprocal" tariffs if trade agreements aren’t reached within three months and said he plans to tackle non-tariff barriers, even with nations running trade surpluses with the US.
US inflation unexpectedly slows down ahead of tariffs impact
March inflation came in weaker than expected, with headline CPI down 0.1%, helped by falling gas prices. Core CPI rose just 0.1%, the smallest increase since July, as declines in airfares, car insurance, used cars, and recreation kept it subdued. Annual core inflation slowed to 2.8%, the lowest since early 2021. Shelter costs rose 4% over the year—also the smallest gain since 2021. While the data predates most of Trump’s new tariffs, it suggests inflation was already easing ahead of those trade actions.
US weekly jobless claims see a slight increase
Jobless claims for the week ending April 5 were 223,000, matching forecasts and slightly above the prior 219,000. Continuing claims fell to 1.85 million. Economists expect claims to rise in the coming months as manufacturing layoffs increase amid tariff uncertainty.
China’s consumer deflation persists as trade war poses new risks
China’s consumer deflation continued in March, with CPI falling 0.1% year-over-year, following a 0.7% drop in February and missing expectations of no change. Core CPI rose to 0.5% from -0.1%, while lower oil and travel costs kept prices down. Factory-gate deflation also deepened, with the PPI falling 2.5%, marking its 30th straight monthly decline. The ongoing trade war with the US adds further pressure on prices.
The dollar drops amid increased uncertainty over tariffs
The 10-year government bond yield (interpolated) on the previous trading day was 1.975, +1.65 bps. The benchmark government bond yield (LB353A) was 1.98, +2.0 bps. Meantime, the latest closed US 10-year bond yields was 4.40, +6.0 bps. USDTHB on the previous trading day closed around 34.18, moving in a range of 33.73 – 33.86 this morning. USDTHB could be closed between 33.60 – 33.95 today. The US dollar tumbled as demand for safe-haven assets surged, particularly the Swiss franc, amid growing uncertainty tied to President Trump's shifting stance on tariffs. The dollar’s weakness was compounded by softer-than-expected inflation data. The euro rallied as a result, climbing back above 1.1200. Meanwhile, the EU announced a 90-day delay on its retaliatory tariffs set for April 15 but warned they’ll go ahead if trade talks with the U.S. don’t yield results. The Japanese yen also strengthened, with USD/JPY dropping toward 144.00 as investors sought safety and the dollar continued to slide.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
