- USDTHB : moving in the range 33.25 – 33.35 this morning, supporting level of USDTHB is around 33.00 resistance level is around 33.30,33.50
- SET Index: 1,667.9 (+1.42%), 16 Mar 2022
- S&P 500 Index: 4,357.9 (+2.21%), 16 Mar 2022
- Thai 10-year government bond yield (interpolated) : 2.34% (+2.20 bps), 16 Mar 2022
- US 10-year treasury yield: 2.19 (+4.00bps), 16 Mar 2022
- Fed Lifts Rates for First Time in Three Years as Fight Against Inflation Begins
- U.S. retail sales slow, huge savings likely to provide a cushion against inflation
- China Stocks Jump Most Since 2008 as State Council Vows Support
- Dollar falls as hawkish Fed delivers without an extra kick
Fed Lifts Rates for First Time in Three Years as Fight Against Inflation Begins
The Federal Reserve raised interest rates on Wednesday for the first time in more than three years and signaled seven rate hikes for this year to bring inflation under control. The Federal Open Market Committee raised its benchmark rate to a range of 0.25% to 0.5% from a 0%-to-0.25% range previously. The start of liftoff on interest rates was widely expected as Federal Reserve Chairman Jerome Powell said earlier this month. The Fed is now forecasting its benchmark rate to rise to 1.9% in 2022, well above the 0.9% forecast in December, pointing to about seven 0.25% rate hikes in total for this year, the Fed’s Summary of Economic Projections showed.
U.S. retail sales slow, huge savings likely to provide a cushion against inflation
Retail sales increased 0.3% last month. Data for January was revised sharply higher to show sales surging 4.9% instead of 3.8% as previously reported. U.S. retail sales increased moderately in February as more expensive gasoline and food forced households to cut back spending on other goods like furniture, electronics and appliances, which could restrain economic growth this quarter. The report from the Commerce Department on Wednesday, however, showed the rebound in sales in January was much stronger than initially estimated. Record gasoline and high food prices are hitting lower-income households the hardest. Overall, consumers are being cushioned by at least $2.5 trillion in excess savings accumulated during the COVID-19 pandemic.
China Stocks Jump Most Since 2008 as State Council Vows Support
Stocks across Hong Kong and China staged a stunning rebound after China’s state council vowed to keep its stock market stable amid a historic rout that erased $1.5 trillion in value over the past two sessions. The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, jumped 13% on Wednesday, its biggest gain since the global financial crisis. The comprehensive statement also sought to resolve other woes that have plagued the market, particularly concerns over Beijing’s tech crackdown, saying efforts to “rectify” internet platform companies should end soon.
Dollar falls as hawkish Fed delivers without an extra kick
The 10-year government bond yield (interpolated) on the previous trading day was 2.34, +2.20 bps. The benchmark government bond yield (LB31DA) was 2.28, -4.00 bps. LB31DA could be between 2.25-2.32. Meantime, the latest closed US 10-year bond yields was 2.19%, +4.00bps. USDTHB on the previous trading day closed around 33.44 Moving in a range from 33.25-33.35 this morning. USDTHB could be closed between 33.20-33.50 today. The dollar fell on Wednesday after the U.S. Federal Reserve moved to a hawkish monetary policy but without delivering a tougher surprise that might have added to its weeks-long momentum. The dollar index, which had gained 3% since the start of the Russia-Ukraine war on Feb. 24 and 10% since May, fell as much as 0.6% on Wednesday as traders parsed Fed statements following a two-day meeting.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
