- USDTHB : moving in the range 32.30 – 32.43 this morning, USD has been strengthen as Russia-Ukraine tension escalates, Fed hike may likely drive USDTHB up in medium term, supporting level of USDTHB is around 32.30, resistance level is around 32.60
- SET Index: 1,696.5 (+0.31%), 23 Feb 2022
- S&P 500 Index: 4,225.5 (-1.86%), 23 Feb 2022
- Thai 10-year government bond yield (interpolated) : 2.23% (+5.00 bps), 23 Feb 2022
- US 10-year treasury yield: 1.99 (+5.00bps), 23 Feb 2022
- Fed's Daly: need more 'urgency' on policy tightening
- ECB's de Guindos says asset purchases must end before raising rates
- BoE's Bailey sees inflation risk but says markets should not get carried away
- Dollar edges up as Ukraine developments dent risk appetite
Fed's Daly: need more 'urgency' on policy tightening
San Francisco Federal Reserve Bank President Mary Daly said on Wednesday she expects the U.S. central bank will need to raise rates at least four times this year, and likely more, to stop high inflation from getting worse. It is important, she told reporters after the event, to have "a little more urgency" on raising interest rates; a rate hike every other meeting "doesn't satisfy the moment," she said, and neither does waiting until later in the year to start reducing the Fed's $9 trillion balance sheet. Daly's embrace Wednesday of a series of four or more rate hikes was a notably hawkish shift from her previous support for a less aggressive stance. She also said the Fed may need to consider a bigger-than-usual half-percentage-point rate hike down the road, although for now quarter-point rate hikes remain her expectation.
ECB's de Guindos says asset purchases must end before raising rates
European Central Bank Vice-President Luis de Guindos said on Wednesday that the institution will first need to end asset purchases before interest rates can rise. "We will look at the (macroeconomic) data, the projections and then we will readjust asset purchases if needed and will see when an interest rate hike can take place," De Guindos told a financial event in Madrid. Earlier on Wednesday, European Central Bank policymaker Robert Holzmann said that the ECB could begin increasing interest rates before ending its bond purchasing programme, challenging the bank's long-held view on the sequence of its upcoming policy moves. With inflation hitting fresh record highs in recent months, the ECB recently walked back on a pledge not to raise rates this year but has long maintained that ending bond purchases comes first, before any interest rate increase.
BoE's Bailey sees inflation risk but says markets should not get carried away
Bank of England Governor Andrew Bailey said on Wednesday there were clear risks that inflation could again overshoot the central bank's forecasts but markets should not get carried away about the likely scale of interest rate rises. The BoE forecasts inflation will peak at a 30-year high of around 7.25% in April when a 54% rise in regulated household energy bills takes effect. Financial markets expect the BoE to raise rates to nearly 2% this year from 0.5% now. "It's not just wage setting, it's also price setting ... it's both," Bailey told lawmakers. "There is very clearly an upside risk there. The upside risk ... comes through from the second-round effects." A combination of higher wages and higher inflation would favour workers with greater bargaining power who tended to be better off, Bailey said.
Dollar edges up as Ukraine developments dent risk appetite
The 10-year government bond yield (interpolated) on the previous trading day was 2.23, +5.00 bps. The benchmark government bond yield (LB31DA) was 2.20, +5.00 bps. LB31DA could be between 2.17-2.23. Meantime, the latest closed US 10-year bond yields was 1.99%, +5.00bps. USDTHB on the previous trading day closed around 32.26 Moving in a range from 32.30-32.43 this morning. USDTHB could be closed between 32.38-32.50 today. Meantime, The U.S. dollar edged higher on Wednesday as the latest developments in the Ukrainian crisis dented investor appetite for risk, as a sell-off in the equity market helped drive a safe-haven bid for the greenback.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
