- USDTHB: moving in the range 37.77-37.88 this morning, supportive level at 37.70 resistance level at 38.00
· SET Index: 1,625.0 (-0.04%), 2 Nov 2022
· S&P 500 Index: 3,759.7 (-2.53%), 2 Nov 2022
· Thai 10-year government bond yield (interpolated): 3.20 (-4.67 bps), 2 Nov 2022
· US 10-year treasury yield: 4.10 (+3.0 bps), 2 Nov 2022
- Fed delivers fourth 75 bps hike, signals scale-back coming
- Euro zone factory downturn deepened in October as demand slumped
- German manufacturing slumps in October as new orders drop
- Dollar regains strength as Powell dashes hope of a Fed pause
Fed delivers fourth 75 bps hike, signals scale-back coming The Federal Reserve on Wednesday raised interest rates by three-quarters of a percentage point as it continued to battle the worst outbreak of inflation in 40 years but signaled future increases in borrowing costs could be made in smaller steps to account for the "cumulative tightening of monetary policy" it has enacted so far. The policy decision set the target federal funds rate in a range between 3.75% and 4.00%, the highest since early 2008. In a press conference after the meeting Fed Chair Jerome Powell cautioned against any sense the central bank will soon move to the sidelines. "It is very premature to be thinking about pausing" on the effort to lift the federal funds target rate, he said.
Euro zone factory downturn deepened in October as demand slumped The decline in euro zone manufacturing activity was sharper than initially estimated last month, indicating that the sector is in recession, as the cost-of-living crisis put a big dent in demand, a survey showed on Wednesday. S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to a 29-month low of 46.4 in October from September’s 48.4, below a preliminary reading of 46.6 and further below the 50-mark separating growth from contraction. An index measuring output, which feeds into a composite PMI due on Friday and seen as a good guide to economic health, dropped to 43.8 from 46.3, marking its fifth month of sub-50 readings.
German manufacturing slumps in October as new orders drop The downturn in Germany's manufacturing sector gathered pace in October as output and new orders slumped, marking a weak start to the fourth quarter that shows no sign of letting up, a surveyed showed on Wednesday. S&P Global's final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of Germany's economy, fell to 45.1, its lowest since May 2020 and down from 47.8 in September. A Reuters poll of analysts had pointed to an October reading of 45.7. An index on new orders dropped to 34.5 from 39.1 amid growing concerns about the economic outlook and high energy costs.
Dollar regains strength as Powell dashes hope of a Fed pause The 10-year government bond yield (interpolated) on the previous trading day was 3.20, -4.67 bps. The benchmark government bond yield (LB31DA) was 3.07, -3.0 bps. LB31DA could be between 3.05-3.15. Meantime, the latest closed US 10-year bond yields was 4.10, +3.0 bps. USDTHB on the previous trading day closed around 37.66 Moving in a range of 37.77-37.88 this morning. USDTHB could be closed between 37.50-37.90 today. The dollar regained some strength on Wednesday after Federal Reserve Chair Jerome Powell said it was premature to discuss a pause in its hiking of interest rates to battle rising consumer prices, as there is "no sense that inflation is coming down.“ The Fed, as markets had expected, raised its key lending rate by 75 basis points for the fourth straight time after a two-day meeting of policy-makers. Markets initially read the Fed's statement at the end of the meeting as dovish and a signal that future rate increases to tame high inflation could be made in smaller increments.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
