- USDTHB: moving in the range 34.60-34.68 this morning, supportive level at 34.55 resistance level at 34.75
· SET Index: 1,668.6 (+0.66%), 21 Feb 2023
· S&P 500 Index: 3,997.3 (-2.02%), 21 Feb 2023
· Thai 10-year government bond yield (interpolated): 2.56 (-1.35 bps), 21 Feb 2023
· US 10-year treasury yield: 3.95 (+13.00 bps), 21 Feb 2023
- U.S. business activity rebounds to eight-month high in February
- Euro zone business growth at 9-month high as services supports
- UK economy's unexpected bounce spurs more BoE rate hike talk
- Dollar clings to modest gains as strong U.S. data lends support
U.S. business activity rebounds to eight-month high in February U.S. business activity unexpectedly rebounded in February, reaching its highest level in eight months, according to a survey on Tuesday, which also showed inflation subsiding. S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 50.2 this month from a final reading of 46.8 in January. That ended seven straight months of the index being below the 50 mark, which indicates contraction in the private sector. The services sector accounted for the rise in business activity, while manufacturing remained weak. Economists polled by Reuters had forecast the flash Composite PMI Output Index at 47.5. The rebound in business activity fits in with recent robust data on retail sales, the labor market and manufacturing production, which have suggested solid momentum in the economy at the start of the year.
Euro zone business growth at 9-month high as services supports Surprisingly strong services growth meant the recovery in euro zone business activity gathered steam this month, expanding much faster than thought, according to a survey on Tuesday, the latest evidence the currency union could escape a recession. A sister survey showed businesses in Britain reporting an unexpected bounce in activity as well as receding price pressures, suggesting the economic outlook across Europe may be less gloomy than predicted. S&P Global’s flash Composite Purchasing Managers’ Index (PMI) for the 20 countries that use the euro, seen as a good gauge of the bloc’s overall economic health, climbed to a nine-month high of 52.3 in February from January’s 50.3. That was comfortably above the 50-mark separating growth from contraction and above all forecasts in a Reuters poll which had predicted a more modest rise to 50.6.
UK economy's unexpected bounce spurs more BoE rate hike talk Britain looks on course to sidestep a long recession after a survey showed a surprise return to growth by businesses this month, raising the likelihood of another Bank of England interest rate hike in March. The preliminary "flash" reading of the S&P Global/CIPS UK Composite Purchasing Managers' Index (PMI) jumped to 53.0 in February from 48.5 in January, above the 50 threshold for growth for the first time since July. It surpassed all forecasts in a Reuters poll of more than 20 economists, which had pointed to a reading of 49.0. Sterling jumped against the dollar and notched its biggest gains against the euro in a month, while British government bond prices fell on the back of the PMI which was stronger than readings for both France and Germany. The strength of the survey made it more likely that the BoE - grappling with an inflation rate still above 10% - would raise interest rates to 4.25% in March.
Dollar clings to modest gains as strong U.S. data lends support The 10-year government bond yield (interpolated) on the previous trading day was 2.56, -1.35 bps. The benchmark government bond yield (LB31DA) was 2.735, +0.00 bps. LB31DA could be between 2.50-3.00. Meantime, the latest closed US 10-year bond yields was 3.95, +13.0 bps. USDTHB on the previous trading day closed around 34.58 Moving in a range of 34.60-34.68 this morning. USDTHB could be closed between 34.30-34.80 today. The dollar held on to modest gains against its peers on Tuesday, supported by strong U.S. economic data, but the greenback was down against the British pound. Business activity in the United States in February unexpectedly rebounded to an eight-month high, increasing to 50.2 from a final reading of 46.8 in January, according to a survey. A PMI reading above 50 indicates expansion while a reading below that signals contraction. It follows recent robust data on retail sales, the labor market and manufacturing production, suggesting solid momentum in the economy at the start of the year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
