- USDTHB : moving in the range 36.58-36.70 this morning, supporting level of USDTHB is around 36.60 resistance level is around 36.70
- SET Index : 1,539.3 (+0.38%), 20 Jul 2022
- S&P 500 Index : 3,959.9 (+0.59%), 20 Jul 2022
- Thai 10-year government bond yield (interpolated) : 2.72, (+7.25 bps), 20 Jul 2022
- US 10-year treasury yield: 3.04 (+3.00 bps), 20 Jul 2022
- China’s holdings of U.S. Treasury fall below $1 trillion since 2010
- UK inflation rises to 40-Year High of 9.4% in June
- Japan posts trade deficit for the 11th month in June as energy imports surge
- Euro surges to two-week high as markets bet on ECB’s action
China’s holdings of U.S. Treasury fall below $1 trillion since 2010 The Treasury Department showed that holdings of Treasury securities by China fell to $981 billion in May from $1 trillion in April, which was below $1 trillion since 2010. That’s a decline of nearly $23 billion from April and down nearly $100 billion, or 9%, from the year-earlier month. Amid rising interest rates running at its fastest rate since 1981, meaning a capital loss for investors who sell the bonds ahead of maturity, that have made U.S. Treasury potentially less attractive. The top foreign holder of U.S. debt, Japan, also has been reducing its holdings, with Japan’s U.S. Treasury ownership dropping 4%YoY to $1.21 trillion in May.
UK inflation rises to 40-Year High of 9.4% in June The U.K.’s Office for National Statistics stated that the consumer price index rose 9.4%YoY annually (or 0.7%MoM), following 9.1%YoY on May, as food and energy prices continued to soar, escalating the 40-year high cost-of-living since 1982. The largest upward contributions to the annual inflation rate in this month came from housing and household services, and transport, principally from motor fuels. Also, food and non-alcoholic beverage prices have risen by 9.8%YoY, up from 8.7%YoY in May, and the highest rate since March 2009. Obviously, the increase in the annual rate for food and non-alcoholic drinks between May and June 2022 was driven by price movements across many of the more detailed classes. On the other hand, the annual rate for clothing and footwear was 6.1%YoY, down from 6.9% in May, which normally fall at this time of year as the summer sales season begins.
Japan posts trade deficit for the 11th month in June as energy imports surge Ministry of Finance data showed the imports surged 46.1%YoY in June, with export 19.4%YoY, resulting in a 1.3838 trillion-yen (approx. $9.99 billion) trade deficit, the 11th straight month of shortfalls. Imports swelled due to a surge in shipments of oil from Saudi Arabia and coal and liquefied natural gas (LNG) from Australia. Imports of LNG from Malaysia and coal from Indonesia posted triple-digit surges. As of January-June, Japan ran a trade deficit over 7.9 trillion-yen (approx. $57 billion), highlighting growing economic pressures from a sharply declining yen and inflation.
Euro surges to two-week high as markets bet on ECB’s action The 10-year government bond yield (interpolated) on the previous trading day was 2.72, +7.25 bps. The benchmark government bond yield (LB31DA) was 2.58, +6.00 bps. LB31DA could be between 2.55-2.65. Meantime, the latest closed US 10-year bond yields was 3.04, +3.00 bps. USDTHB on the previous trading day closed around 36.68 Moving in a range of 36.58-36.70 this morning. USDTHB could be closed between 36.50-36.75 today. The dollar index slightly fell toward 106.850-106.895 this morning, showing weaker US dollar stream, to focus on ECB’s rate hike meeting on today (July 21) instead. EURUSD is clinging to gain upside toward over $1.0200, pointing out the two-week high rate
Sources : ttb analytics , Bloomberg, CNBC, Tradingeconomics, Investing, CEIC
