- USDTHB : moving in the range 33.14 – 33.19 this morning, USDTHB at 33.10 might be possible long entry. Hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 33.10, 33.00, resistance level is around 33.30, 33.50
- SET Index: 1,667.8 (+0.36%), 2 Feb 2022
- S&P 500 Index: 4,589.4 (+0.94%), 2 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.12% (-1.00 bps), 2 Feb 2022
- US 10-year treasury yield: 1.78 (-3.00bps), 2 Feb 2022
- ECB seen on hold but may acknowledge inflation risks
- Japan's service sector shrinks at fastest pace in 5 months
- South Korea Jan factory activity grows at fastest pace in 6 months
- U.S. dollar falls on weak private jobs data; euro up as inflation perks up
ECB seen on hold but may acknowledge inflation risks
The European Central Bank is all but certain to keep policy unchanged on Thursday but may have to acknowledge that inflation could stay high for longer than it had projected, a signal that may be taken by some as a hint at a faster exit from stimulus. Having extended support measures only in December, any policy change now would be premature. The bank argues that inflation will soon abate without its intervention and that long-term price pressures are actually too weak, meaning support is still needed to underpin inflation which undershot the ECB's 2% target for much of the last decade. This view is now being challenged by investors and several policymakers, and January's 5.1% inflation print only adds to pressure for Christine Lagarde to acknowledge mounting risks. Markets already doubt the ECB and are pricing in 30 basis points of rate hikes this year, despite its insistence that any move in 2022 is very unlikely.
Japan's service sector shrinks at fastest pace in 5 months
Japan's services sector activity contracted at the fastest pace in five months in January in a sign businesses faced pressure. The world's third-largest economy has seen COVID-19 cases surge in recent weeks, forcing the government to roll out tougher curbs across much of the country in response to a rise in hospital admissions driven by Omicron. The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) slumped to a seasonally adjusted 47.6 from the prior month's 52.1 and a 48.8 flash reading. Service firms cut staffing levels at the fastest pace in 20 months and became less optimistic that activity would rise over the next year. The composite PMI, which is calculated using both manufacturing and services, dropped to 49.9 from December's final of 52.5.
South Korea Jan factory activity grows at fastest pace in 6 months
South Korea's factory activity grew at the sharpest pace since July last year as output and new order picked up but persistent supply chain woes weighed on the outlook, a private-sector survey showed on Thursday. The IHS Markit purchasing managers' index (PMI) jumped to 52.8 in January in seasonally adjusted terms from 51.9 in December. New export orders for South Korean manufactured goods returned to expansionary territory of 50.4 from 49.5 in December with improving demand from the United States, Europe and China, in a sign global trade will continue to recover from the pandemic. The survey said a stronger recovery was held back by sustained material shortages and the impact of the Omicron variant.
U.S. dollar falls on weak private jobs data; euro up as inflation perks up
The 10-year government bond yield (interpolated) on the previous trading day was 2.12, -1.00 bps. The benchmark government bond yield (LB31DA) was 2.10, +1.00 bps. LB31DA could be between 2.07-2.12. Meantime, the latest closed US 10-year bond yields was 1.78%, -3.00bps. USDTHB on the previous trading day closed around 33.21 Moving in a range from 33.14-33.19 this morning. USDTHB could be closed between 33.11-33.21 today. Meantime, The dollar declined to a more than a one-week low on Wednesday after data showed a drop in U.S. private sector employment in January due to the increase in COVID-19 infections.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
