- USDTHB : moving in the range 33.36 – 33.46 this morning, USDTHB to dip in short term, supporting level 33.40, 33.15
- SET Index: 1,618.4 (+0.56%), 08 Dec 2021
- S&P 500 Index: 4,701.2 (+0.56%), 08 Dec 2021
- Thai 10-year government bond yield (interpolated) : 1.96% (+3.00 bps), 08 Dec 2021
- US 10-year treasury yield: 1.52% (+4.00bps), 08 Dec 2021
- Senate panel likely to hold hearings for Fed's Powell, Brainard next month
- Bank of Canada keeps interest rates unchanged, warns of Omicron uncertainty
- BoE weighs up inflation pressure and Omicron for rates decision
- Dollar stays soft, with Omicron still top of mind
Senate panel likely to hold hearings for Fed's Powell, Brainard next month
U.S. Senate Banking Committee Chair Sherrod Brown expects to wait until January to hold hearings on President Joe Biden's nominees to the top two Federal Reserve positions, according to the Ohio senator's office. Biden last month nominated Fed Chair Jerome Powell to a second four-year term and picked Fed Governor Lael Brainard for vice chair at the central bank. Nominees must be approved by Brown's panel before being considered by the full Senate. Powell's current term ends in early February. The hearings could come at a key moment in monetary policy, as the Fed pivots from the extraordinary accommodative policies to a gradually tighter policy stance. The Fed will hold its next policy meeting next week. Powell and his fellow policymakers are expected to discuss accelerating the wind-down of the central bank's bond-buying program, ending it by March or April.
Bank of Canada keeps interest rates unchanged, warns of Omicron uncertainty
The Bank of Canada on Wednesday held its key overnight interest rate unchanged as 0.25%, as expected, and said inflation was broadening even as it warned that the Omicron coronavirus variant has created "renewed uncertainty." It said economic slack would be absorbed in the "middle quarters" of 2022, setting the stage for a first rate hike as soon as April. But it dropped a reference to the pressures pushing up prices as being "temporary," while noting employment had returned to pre-pandemic levels, with job vacancies high and wage growth picking up. While Canada's economy had "considerable momentum" going into the fourth quarter, the central bank said that Omicron, along with "devastating floods" in British Columbia last month that cut off access to a key port, could hit economic activity.
BoE weighs up inflation pressure and Omicron for rates decision
The Bank of England faces a fresh decision next week on whether to become the first of the world's major central banks to raise interest rates since the onset of the coronavirus pandemic. The BoE shocked financial markets on Nov. 4 when its policymakers voted 7-2 to keep Bank Rate at 0.1%, even as it said inflation was heading towards 5%. Many investors had read previous comments by Governor Andrew Bailey as meaning a November rate hike was extremely likely. But the emergence of the Omicron coronavirus variant has prompted some MPC officials to sound a new note of caution about the economy's recovery, although Omicron could also add to inflation pressures by aggravating supply chain problems. The BoE's Monetary Policy Committee is due to announce its next policy decisions on Dec. 16 and Feb. 3.
Dollar stays soft, with Omicron still top of mind
The 10-year government bond yield (interpolated) on the previous trading day was 1.96, +3.00 bps. The benchmark government bond yield (LB31DA, 10.0 years) was 1.96, +3.00 bps. LB31DA could be between 1.94-1.99. Meantime, the latest closed US 10-year bond yields was 1.52%, +4.00bps. USDTHB on the previous trading day closed around 33.47 Moving in a range from 33.36-33.46 this morning. USDTHB could be closed between 33.36-33.46 today. Meantime, The dollar failed to pick up ground on most major peers on Thursday as markets saw optimism in early data hinting the Omicron variant of the new coronavirus may not be as bad as feared, even as new COVID-19 restrictions in Britain hurt the sterling.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
