- USDTHB : moving in the range 32.70 – 32.77 this morning, USDTHB at 32.60 level might be possible long entry. Hawkish Fed may likely continue to drive USDTHB in medium term, supporting level of USDTHB is around 32.60 resistance level is around 32.85, 33.00
- SET Index: 1,703.2 (+1.12%), 9 Feb 2022
- S&P 500 Index: 4,587.2 (+1.44%), 9 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.20% (-1.00 bps), 9 Feb 2022
- US 10-year treasury yield: 1.94 (-2.00bps), 9 Feb 2022
- Fed's Mester says case for half-percentage-point rate hike in March not compelling
- UK housing market heats up in January despite cost pressures – RICS
- ECB may need to raise rates in 2022, new Bundesbank chief says
- Dollar ticks down, euro up ahead of U.S. CPI report
Fed's Mester says case for half-percentage-point rate hike in March not compelling
The Federal Reserve will have to move faster than it has in the past to remove accommodation and tame inflation that is well above target, but it may not be necessary to start the liftoff in interest rates with a half-percentage-point hike in March, Fed Mester said. Inflation could ease to above 2% later this year as some of the constraints on supply are resolved and the U.S. central bank removes some of the support it provided to the economy during the coronavirus pandemic, Mester said. Referring to the Fed's balance sheet, Mester said the central bank needs to move faster to reduce its nearly $9 trillion portfolio than it has in the past and that it may need to consider selling some of its mortgage-backed securities as the Treasury securities in the portfolio have shorter duration and are likely to run off the balance sheet quickly, she told.
UK housing market heats up in January despite cost pressures – RICS
Already rapid house price growth in Britain hit a new six-month high in January but momentum in the housing market could soon fade because of a growing cost-of-living squeeze, a closely-watched survey showed on Thursday. The Royal Institution of Chartered Surveyors (RICS) said a net balance of +74% of its members reported a rise in house prices in January, up from +70% in December and its highest since July. The report echoed other surveys that show Britain's housing market retained much of its momentum going into 2022, despite the phasing out of temporary tax breaks on property purchases in the second half of 2021. But with household budgets being squeezed by high inflation and imminent tax rises, RICS cast doubt on whether the housing market can keep up its recent strength.
ECB may need to raise rates in 2022, new Bundesbank chief says
The ECB German policymakers openly discussed prospects for an interest rate hike on Wednesday, with new Bundesbank chief Joachim Nagel arguing that a move could come this year, as inflation remains uncomfortably high. The ECB last week walked back on a pledge not to raise rates in 2022 and policymakers are now looking at how best to dismantle unconventional policies that have kept the euro zone afloat for much of the past decade. "If the (inflation) picture remains unchanged in March, I will be in favour of normalising monetary policy," Nagel told German newspaper Die Zeit. "The first step is to discontinue the net asset purchases over the course of 2022. Then interest rates could be raised before this year is over." Nagel joined Dutch central bank chief Klaas Knot in discussing a rate hike this year, which would be the ECB's first increase in borrowing costs since 2011.
Dollar ticks down, euro up ahead of U.S. CPI report
The 10-year government bond yield (interpolated) on the previous trading day was 2.20, -1.00 bps. The benchmark government bond yield (LB31DA) was 2.19, -1.00 bps. LB31DA could be between 2.17-2.22. Meantime, the latest closed US 10-year bond yields was 1.94%, -2.00bps. USDTHB on the previous trading day closed around 32.74 Moving in a range from 32.70-32.77 this morning. USDTHB could be closed between 32.70-32.80 today. Meantime, The dollar slid further on Wednesday and the euro extended gains following a hawkish shift from the European Central Bank last week and ahead of key data on U.S. consumer prices due on Thursday.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
