- USDTHB : moving in the range 36.15 – 36.30, supporting level of USDTHB is around 36.10 resistance level is around 36.50
- SET Index: 1,546.8 (-0.68%), 12 Jul 2022
- S&P 500 Index: 3,801.8 (-1.38%), 13 Jul 2022
- Thai 10-year government bond yield (interpolated) : 2.55% (-6.00 bps), 12 Jul 2022
- US 10-year treasury yield: 2.91 (-5.00 bps), 13 Jul 2022
- U.S. annual consumer inflation posts largest increase since 1981 at 9.1%
- EU slashes euro zone growth outlook, expects higher inflation
- The Yield Curve Inversion Extends to its Largest Point Since 2000
- Euro back above parity, dollar dips after inflation surges
U.S. annual
consumer inflation posts largest increase since 1981 at 9.1%
U.S. annual consumer prices jumped 9.1% in June, the largest increase in more
than four decades, leaving Americans to dig deeper to pay for gasoline, food,
healthcare and rents, and the Federal Reserve most certain to hike interest
rates by another 75 basis points at the end of the month. The
bigger-than-expected rise in the year-on-year consumer price index reported by
the Labor Department on Wednesday also reflected higher prices for a range of
other goods and services, including motor vehicles, apparel and household
furniture. The CPI increased by the most in nearly 17 years on a monthly basis.
EU slashes
euro zone growth outlook, expects higher inflation
The European Commission has predicted record levels of inflation and slashed
its GDP forecast for 2022 and 2023 as a result of Russia's invasion of Ukraine,
crimped demand due to surging prices and the danger of winter energy shortages.
The Commission now expects inflation to jump 7.6% in 2022, higher than its May
estimate of 6.1% for the year. It also expects inflation to rise 4% next year
from May's forecast of
2.7%
The Yield Curve Inversion Extends to its Largest Point Since 2000 An indicator of economic distress, the yield curve inversion between 10-year and 2-year rates, moved to its biggest point since the year 2000 on Wednesday. The gap between the 2-year and 10-year extended further during Wednesday's session, with the 2-year moving as high as 21.7 basis points above the 10-year benchmark, past 2006 levels. The 2-year is more sensitive to shifts in monetary policy, with today's move coming following data showing the consumer price index rose 9.1% year-over-year basis in June.
Euro back above parity, dollar dips after inflation surges The 10-year government bond yield (interpolated) on the previous trading day was 2.55, -6.00 bps. The benchmark government bond yield (LB31DA) was 2.46, -8.00 bps. LB31DA could be between 2.42-2.55. Meantime, the latest closed US 10-year bond yields was 2.91%, -5.00bps. USDTHB on the previous trading day closed around 36.30 Moving in a range from 36.15-36.30 this morning. USDTHB could be closed between 36.10-36.40 today. The dollar retraced from a 20-year high and the euro broke back above parity, following a brief dip below, after data on Wednesday showed U.S. consumer price inflation surged to a more than 40-year high in June. On Wednesday, The euro plunged to $0.9998 against the greenback after the data, breaking below the $1 level for the first time since December 2002, before bouncing back to last trade at $1.0061. Traders ramped up bets after the inflation print that the U.S. central bank could raise rates by 100 basis points when it meets on July 26-27. A hike of at least 75 basis points is seen as almost certain.
Sources : Bloomberg, CNBC, Investing, CEIC
