- USDTHB : moving in the range 36.53-36.65, supporting level of USDTHB is around 36.50 resistance level is around 36.70
- SET Index : 1,544.8 (+0.74%), 18 Jul 2022
- S&P 500 Index : 3,830.9 (+1.06%), 18 Jul 2022
- Thai 10-year government bond yield (interpolated) : 2.61, (+1.00 bps), 18 Jul 2022
- US 10-year treasury yield: 2.96 (+3.00 bps), 18 Jul 2022
- U.S. retail sales rose more than expected as more price-driven in June during record-high in inflation
- Russia's war worsens the EU economic outlook
- China's growth slows in the second quarter amid Zero-COVID policy
- EURUSD remains depressed amid damp mood
U.S. retail
sales rose more than expected as more price-driven in June during record-high
in inflation
The U.S. Census Bureau announced the advanced
estimates of U.S. retail and food services sales for June 2022, showing the
retail sales increased 1.0%MoM in June comparing to the month-earlier or
8.4%YoY from the annual-basis. Consumer spending remains robust but also
reflect a general increase in prices for goods and services. Sales at gasoline
stations recorded the biggest increase (3.6%), followed by sales at non-store
retailers (2.2%); miscellaneous store retailers (1.4%); furniture stores
(1.4%); food services and drinking places (1.0%) respectively. On the other
hand, lower sales were recorded for building materials (-0.9%), clothing
(-0.4%) and in general merchandise stores (-0.2%).
Russia's war worsens the EU economic outlook
The European Commission cut its forecast for EU economic projection in 2023 to 1.5% in July, revised down from 2.3% in May but maintaining its EU Forecast for 2.7% in this year. Although a recent drop in oil prices could bring about a deceleration in inflation, further increases in gas prices could strengthen and it warned a sharper tightening of financial conditions would weigh on growth and on financial stability. The EU economy remains particularly vulnerable to developments in energy markets due to its high reliance on Russian fossil fuels, and weakening global growth detracts from external demand.
China's growth slows in the second quarter amid Zero-COVID
policy
China’s economic growth has contracted sharply during the second quarter of the
year to 2.6%QoQ from the previous quarter or 0.4%YoY, comparing to 4.8%YoY in
the first quarter. For the first half of the year, GDP grew 2.5%YoY from a year
earlier amid the government’s target of 5.5% (vs Reuters poll at 4.0%).
Consumers are still harboring some uncertainty about lockdowns, damped the
employment situation remaining fragile. The nationwide survey-based jobless
rate eased to 5.5% in June, from 5.9% in May but youth unemployment climbed to
a record of 19.3% in June.
EURUSD remains depressed amid damp mood
The 10-year government bond yield (interpolated) on the previous trading day was 2.61, +1.00 bps. The benchmark government bond yield (LB31DA) was 2.52, +3.00 bps. LB31DA could be between 2.50-2.55. Meantime, the latest closed US 10-year bond yields was 2.96%, +3.00bps. USDTHB on the previous trading day closed around 36.63 Moving in a range from 36.53-36.65 this morning. USDTHB could be closed between 36.00-36.30 today. The dollar retraced from a 20-year high, and the euro broke back above parity. EURUSD is trading pressured as the US dollar looks to extend its recovery. Risk sentiment remains in a weaker spot so far this Tuesday amid growth worries. ECB decision, Russia’s Nord Stream 1 restart hold the key for the euro.
Sources : ttb analytics , Bloomberg, CNBC, Tradingeconomics, Investing, CEIC
