- USDTHB : moving in the range 33.21 – 33.29 this morning, USDTHB at current level might be possible long entry but still has chance to drop to around 33.15. Hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 33.15
- SET Index: 1,672.6 (-0.44%), 14 Jan 2022
- S&P 500 Index: 4,662.9 (+0.08%), 14 Jan 2022
- Thai 10-year government bond yield (interpolated) : 2.09% +2.00 bps), 14 Jan 2022
- US 10-year treasury yield: 1.78 (+8.00bps), 14 Jan 2022
- Biden seeks to reshape Fed with historically diverse slate of nominees
- China's Q4 and 2021 GDP grow faster than expected
- China cuts rates on policy loans, analysts point to more easing ahead
- Dollar finds a footing as traders brace for hawkish Fed
Biden seeks to reshape Fed with historically diverse slate of nominees
U.S. President Joe Biden on Friday nominated former Federal Reserve Governor Sarah Bloom Raskin for the Fed's key regulatory post and economists Lisa Cook and Philip Jefferson to serve on its board in what would represent a landmark demographic overhaul of the world's most powerful central bank. Biden's picks for the Fed followed his decision to nominate Jerome Powell for a second term as head of the central bank and elevate Governor Lael Brainard to the vice chair position and presents him an opportunity to leave a lasting imprint on a body that sets economic policies - particularly about interest rates. The appointments were announced as Biden's own plans for a post-pandemic economy have run into an unexpected spike in inflation and partisan squabbling in Congress - a factor that may also come into play during the nominees' confirmation process.
China's Q4 and 2021 GDP grow faster than expected
China's economy grew 4.0% in the fourth quarter from a year earlier, faster than expected but its weakest expansion in one-and-half years. Gross domestic product (GDP) had been forecast to expand 3.6% from a year earlier, according to a Reuters poll of analysts, slowing from 4.9% in the third quarter. GDP grew 8.1% in 2021, the data showed, faster than 8.0% expected by analysts. On a quarter-on-quarter basis, GDP rose 1.6% in October-December, compared with expectations for a 1.1% rise and a revised 0.7% gain in the previous quarter. China's industrial output grew 4.3% in December from a year earlier, picking up from a 3.8% increase in November, official data showed. The figure beat expectations of a 3.6% increase. However, retail sales in December missed expectations with only a 1.7% increase from a year earlier while analysts had expected them to grow 3.7% after rising 3.9% in November.
China cuts rates on policy loans, analysts point to more easing ahead
China's central bank on Monday unexpectedly cut the borrowing costs of its medium-term loans for the first time since April 2020, while some market analysts expect more policy easing this year. The PBOC said it was lowering the interest rate on 700 billion yuan ($110.19 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points to 2.85% from 2.95% in previous operations. The world's second-largest economy has shown signs of slowing after a rapid rebound from the COVID-19 slump, with concerns about the financial health of property developers and the rapid spread of the Omicron coronavirus variant clouding the outlook. With 500 billion yuan worth of MLF loans maturing on Monday, the operation resulted in a net injection of 200 billion yuans into the banking system.
Dollar finds a footing as traders brace for hawkish Fed
The 10-year government bond yield (interpolated) on the previous trading day was 2.09, +2.00 bps. The benchmark government bond yield (LB31DA, 9.8 years) was 2.10, +2.00 bps. LB31DA could be between 2.08-2.12. Meantime, the latest closed US 10-year bond yields was 1.78%, +8.00bps. USDTHB on the previous trading day closed around 33.22 Moving in a range from 33.21-33.29 this morning. USDTHB could be closed between 33.18-33.28 today. Meantime, The dollar clung to a late week bounce on Monday as investors braced for January's U.S. Federal Reserve meeting and raised bets it will chart a year ahead holding several rate hikes, while China surprised analysts with a benchmark cut.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
