- USDTHB : moving in the range 35.25 – 35.35 this morning, supporting level of USDTHB is around 35.00 resistance level is around 35.30
- SET Index: 1,559.4 (-0.11%), 17 Jun 2022
- S&P 500 Index: 3,674.8 (+0.22%), 17 Jun 2022
- Thai 10-year government bond yield (interpolated) : 3.04% (-4.10bps), 17 Jun 2022
- US 10-year treasury yield: 3.25 (-3.00bps), 17 Jun 2022
- U.S. reviews China tariffs, possible pause on federal gas tax to curb inflation
- U.S. manufacturing output softens; leading indicator extends decline
- Euro zone inflation reached record high 8.1% in May
- Yen tanks as FX market adjusts to central bank rate decisions
U.S. reviews China tariffs, possible pause on federal gas tax to curb inflation
President Joe Biden's administration is reviewing the removal of some tariffs on China and a possible pause on federal gas tax as the United States struggles to tackle soaring gasoline prices and inflation. U.S. Treasury Secretary Janet Yellen said some tariffs on China inherited from the administration of former President Donald Trump served "no strategic purpose" and added that Biden was considering removing them as a way to bring down inflation. Energy Secretary Jennifer Granholm said the president was also evaluating a pause on federal gas tax to bring down prices, telling CNN that such a move was "not off the table.“
U.S. manufacturing output softens; leading indicator extends decline
Production at U.S. factories unexpectedly fell in May, the latest sign of cooling economic activity as the Federal Reserve aggressively tightens monetary policy to tame inflation. Manufacturing output dipped 0.1% last month, the first decline since January, after increasing 0.8% in April. Slowing growth was indicated in other data showing a gauge of future economic activity declining in May for a third straight month. Other data this week showed a drop in retail sales last month as well as steep declines in homebuilding and permits. Weakness in manufacturing output also reflects a shift in spending from goods to services.
Euro zone inflation reached record high 8.1% in May
Euro zone inflation rose to a record high 8.1% last month in line with a preliminary estimate, more than four times the European Central Bank's target and underscoring its plans to raise interest rates next month to tame runaway price growth. Price growth across the 19 countries sharing the euro rose to 8.1% in May from 7.4% in April. Though inflation is now four times the ECB's 2% target, policymakers appear equally worried about a quick rise in underlying prices as they suggest that rapid inflation is now getting embedded via second round effects. Inflation excluding food and energy costs, a figure closely watched by the ECB, accelerated to 4.4% from 3.9%.
Yen tanks as FX market adjusts to central bank rate decisions
The 10-year government bond yield (interpolated) on the previous trading day was 3.04, -4.10 bps. The benchmark government bond yield (LB31DA) was 2.95, -8.00 bps. LB31DA could be between 2.90-3.03. Meantime, the latest closed US 10-year bond yields was 3.28%, -5.00bps. USDTHB on the previous trading day closed around 35.23 Moving in a range from 34.25-35.35 this morning. USDTHB could be closed between 35.20-35.50 today. The Japanese yen tumbled against the dollar on Friday after the Bank of Japan bucked a wave of tightening and stuck with its ultra-accommodative stance, adding to soaring volatility in currency markets hit by a series of rate hikes this week.
Sources : ttb analytics , Bloomberg, CNBC, Investing, CEIC
