- USDTHB: moving in the range 34.60-34.76 this morning, supportive level at 34.50 resistance level at 34.75
· SET Index: 1,599.7 (-0.91%), 10 March 2023
· S&P 500 Index: 3,861.6 (-1.46%), 10 March 2023
· Thai 10-year government bond yield (interpolated): 2.50 (-2.26 bps), 10 March 2023
· US 10-year treasury yield: 3.70 (-23.00 bps), 9 March 2023
- Strong US job growth persists; wage inflation shows signs of slowdown
- Return to school unexpectedly boosts UK economy in January
- China's February credit grows faster than expected, supporting recovery
- Dollar weakens after U.S. jobs data suggests slower rate hike path
Strong US job growth persists; wage inflation shows signs of slowdown The U.S. economy added jobs at a brisk clip in February, but monthly wage growth slowed, and the unemployment rate rose, pointing to some labor market loosening and prompting financial markets to dial back expectations that the Federal Reserve would raise interest rates by half a percentage point this month. The Labor Department's closely watched employment report on Friday also showed labor supply swelled last month, helping to lift the share of the prime-age population in the labor force to the highest level since just before the COVID-19 pandemic. Some economists viewed the mixed report as raising the chances that the economy would avoid a much-feared recession this year, and instead only experience slower growth. Nonfarm payrolls increased by 311,000 jobs last month, the survey of establishments showed. Data for January was revised lower to show 504,000 jobs added instead of the previously reported 517,000.
Return to school unexpectedly boosts UK economy in January Children returning to school after an illness-ravaged December provided an unexpected, one-off boost to Britain’s economy in January, when growth in output exceeded forecasts, data showed on Friday. The Office for National Statistics (ONS) said Britain’s economy expanded 0.3% month-on-month, after a drop of 0.5% in December – a reading that is likely to further allay recession fears, at least in the short term. A Reuters poll of economists had pointed to growth of 0.1%. The pound rose against the dollar and euro on the back of the figures, which showed growth was powered entirely by services – much of it due to the one-off bounce in the education sector. The entertainment sector – helped by the men’s soccer Premier League returning to action after the 2022 World Cup – was another fillip for the economy.
China's February credit grows faster than expected, supporting recovery China reported unexpectedly strong credit growth for February, with money supply expanding at the fastest pace in nearly 7 years, as Beijing looks to support a nascent economic recovery amid rising global risks. The government's lifting of harsh pandemic curbs in December and other measures have started to rekindle credit demand in the world's second-largest economy, after a COVID-induced slump rattled business and consumer confidence. But there are some fears that momentum could fade after the initial bounce. Growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, quickened to 9.9% in February from a year earlier, the highest since November 2022, and rising from 9.4% in January.
Dollar weakens after U.S. jobs data suggests slower rate hike path The 10-year government bond yield (interpolated) on the previous trading day was 2.50, -2.26 bps. The benchmark government bond yield (LB31DA) was 2.675, -7.00 bps. LB31DA could be between 2.50-3.00 Meantime, the latest closed US 10-year bond yields was 3.70, -23.00 bps. USDTHB on the previous trading day closed around 35.08 Moving in a range of 34.60-34.76 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar weakened on Friday after U.S. labor data for February showed slower wage growth, suggesting an easing of inflation pressures may keep the Federal Reserve's pace of interest rate hikes modest and thereby reduce the greenback's appeal. The U.S. economy added jobs at a brisk clip in February, but slower wage growth and a rise in the unemployment rate prompted financial markets to dial back expectations for a 50-basis point rate hike when Fed policymakers meet in two weeks. Congressional testimony earlier in the week by Fed Chairman Jerome Powell was seen as hawkish and strengthened the dollar as Treasuries pay more in yield than other government debt. The dollar slid against all major currencies but was essentially flat against the Canadian dollar. The dollar index, a basket of trading currencies, fell 0.618%.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
