- USDTHB: moving in the range 32.835-32.88 this morning, supportive level at 32.70 resistance level at 33.00
· SET Index: 1,688.5 (+0.18%), 19 Jan 2023
· S&P 500 Index: 3,898.9 (-0.77%), 19 Jan 2023
· Thai 10-year government bond yield (interpolated): 2.41 (-3.49 bps), 19 Jan 2023
· US 10-year treasury yield: 3.39 (+2.00 bps), 13 Jan 2023
- U.S. producer prices fall more than expected in December
- Japan CPI inflation rises to 41-year high in Dec as expected
- Thai Lunar New Year spending seen at 3-yr high as tourism rebounds
- U.S. dollar slumps as data continues to show slowdown; yen rises
U.S. producer prices fall more than expected in December U.S. producer prices fell more than expected in December as the costs of energy products and food declined, offering more evidence that inflation was receding. The producer price index for final demand decreased 0.5% last month, the Labor Department said on Wednesday. Data for November was revised lower to show the PPI rising 0.2% instead of 0.3% as previously reported. In the 12 months through December, the PPI increased 6.2% after climbing 7.3% in November. Economists polled by Reuters had forecast the PPI dipping 0.1% on the month and gaining 6.8% year-on-year. The report came on the heels of news last week that monthly consumer prices fell for the first time in more than 2-1/2 years in December. Inflation is subsiding as the Federal Reserve's fastest interest rate hiking cycle since the 1980s cools demand for goods. This could allow the U.S. central bank to further scale back the pace of its rate increases next month.
Japan CPI inflation rises to 41-year high in Dec as expected Japan’s core consumer price index rose as expected to a 41-year high in December, data showed on Friday, signaling more pressure on the economy from rising prices and on the Bank of Japan to potentially tighten monetary policy. National Core CPI inflation, which gauges price changes in all items excluding fresh food, rose at an annualized 4% in December from 3.7% in November, data from the Statistics Bureau showed. The index was at its highest level since December 1981. Including fresh food, CPI inflation also rose 4% in December from 3.8% in the prior month. Gas and utilities continued to be the biggest contributor to rising inflation, with gas prices jumping over 23% during the month, while electricity costs rose 21%.
Thai Lunar New Year spending seen at 3-yr high as tourism rebounds Thailand’s consumer spending over the Lunar New Year period could rise 13.6% to 45 billion baht ($1.36 billion), a three-year high, as the economy recovers and China’s border reopening bolsters tourism, a university survey showed on Thursday. The estimated spending compares with 39.6-billion-baht last year, Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, told a briefing. Lunar New Year celebrations normally signal a jump in spending by many Thais and visitors from China and other parts of Asia. China’s reopening raises hopes for the return of Chinese visitors, who accounted for nearly a third of Thailand’s 40 million foreign tourist arrivals in pre-pandemic 2019. The government expects at least five million Chinese tourists this year, with some 300,000 in the first quarter.
U.S. dollar slumps as data continues to show slowdown; yen rises The 10-year government bond yield (interpolated) on the previous trading day was 2.41, -3.49 bps. The benchmark government bond yield (LB31DA) was 2.47, -1.0 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.39, +2.0 bps. USDTHB on the previous trading day closed around 33.08 Moving in a range of 32.835-32.88 this morning. USDTHB could be closed between 32.90-33.20 today. The dollar slid on Thursday in choppy trading, as a slew of data continued to show that the U.S. economy was slowing down in the wake of multiple hefty interest rate hikes from the Federal Reserve, with the market anticipating a pause in tightening this year. The yen, on the other hand, rallied due in part to expectations that the Bank of Japan (BOJ) will eventually shift away from ultra-loose monetary policy. In the United States, Thursday's data showed overall housing starts declined 1.4% to a rate of 1.382 million units last month. Building permits dropped as well, down 1.6% to a rate of 1.330 million units. Manufacturing activity in the Mid-Atlantic region softened as well in January. The Philadelphia Fed's monthly manufacturing index rose to negative 8.9 this month, from negative 13.7 in December, an improvement from the median estimate of negative 11.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
