- USDTHB: moving in the range 36.13-36.44 this morning, supporting level of USDTHB is around 36.35 resistance level is around 36.45
- SET Index: 1,644.8 (+0.08%), 26 Aug 2022
- S&P 500 Index: 4,057.7 (-3.43%), 26 Aug 2022
- Thai 10-year government bond yield (interpolated): 2.53 (-0.92 bps), 26 Aug 2022
- US 10-year treasury yield: 3.04 (+1.00 bps), 26 Aug 2022
· Fed to Continue to Tighten to Bring Inflation Down
· US Personal Spending Rises Less than Expected
· US PCE Prices Fall in July
· Dollar hits 20-year high on Powell lift and Oil climbs on OPEC supply cut
Fed to Continue to Tighten to Bring Inflation Down
Reducing inflation is likely to require a sustained period of
below-trend growth but failure to restore price stability would mean far
greater pain, Fed Chair Powell said during his speech at the Jackson Hole
symposium. Fed Chair also said that another unusually large increase could be
appropriate at next meeting, but the decision for September will depend on the
totality of the incoming data and the evolving outlook. He also added that at
some point, as the stance of monetary policy tightens further, it likely will
become appropriate to slow the pace of increases.
US Personal Spending Rises Less than Expected Personal spending in the US edged up a meagre 0.1% month-over-month in July of 2022, after jumping 1% in June, and below forecasts of 0.4%. It is the weakest performance so far this year, as consumption increased for services, namely housing and international travel but declined for goods, namely gasoline and other energy goods. Consumer spending has been resilient despite surging inflation and interest rates, prompted by summer travel, rising incomes, and high savings. Still, it but could soon start slowing as the Fed monetary tightening continues, energy costs remain elevated and the inflation holds close to 40-year highs, weighing on consumers' affordability.
US PCE Prices Fall in July The personal consumption expenditure price index in the United States fell 0.1% month-over-month in July of 2022, after jumping 1% in June which was the largest increase since September 2005. Prices for goods decreased 0.4% while prices for services increased 0.1%. Food prices were up 1.3% while energy costs fell 4.8%. Excluding food and energy, the PCE price index increased by 0.1%. The annual rate slowed to 6.3% from 6.8% in June, which was the highest reading since January 1982.
Dollar hits 20-year high on Powell lift and Oil climbs on OPEC supply cut The 10-year government bond yield (interpolated) on the previous trading day was 2.53, -0.92 bps. The benchmark government bond yield (LB31DA) was 2.39, -4.0 bps. LB31DA could be between 2.35-2.45. Meantime, the latest closed US 10-year bond yields was 3.04, +1.00 bps. USDTHB on the previous trading day closed around 35.90 Moving in a range of 36.13-36.44 this morning. USDTHB could be closed between 36.35-36.45 today. The dollar index appreciated past 109 on Monday, hitting its highest levels in 20 years, after Federal Reserve Chair Jerome Powell delivered a stern commitment to bring down inflation by keeping interest rates higher for longer in a policy speech at the Jackson Hole conference late last week. Powell signaled that Fed’s focus is broader than a month or two of data and that it will continue pushing ahead until inflation moves down closer to its 2% target. Oil prices rose 1% on Monday, as expectations OPEC will cut output if needed to support prices, conflict in Libya, and rising demand amid soaring natural gas prices in Europe helped offset a dire outlook for growth in the United States.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
