- USDTHB: moving in the range 34.12-34.20 this morning supportive level at 34.07 resistance level at 34.24
· SET Index: 1,529.1 (-0.14%), 28 April 2023
· S&P 500 Index: 4,167.9 (-0.04%), 1 May 2023
· Thai 10-year government bond yield (interpolated): 2.54 (+1.80 bps), 28 April 2023
· US 10-year treasury yield: 3.59 (+15.00 bps), 1 May 2023
- US manufacturing contracts again in April, but pace slows
- China non-manufacturing activity expands more slowly in April
- South Korea inflation hits 14-month low, backs view rate-hike cycle is over
- Dollar gains before Fed meeting, jobs data
US manufacturing contracts again in April, but pace slows U.S. manufacturing pulled off a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed amid higher borrowing costs and tighter credit, which have raised the risk of a recession this year. Despite the weakness in factory activity and demand for goods reported by the Institute for Supply Management (ISM) on Monday, there was a build-up of inflation pressures last month. This supports expectations that the U.S. Federal Reserve will raise interest rates by another 25 basis points to a 5%-5.25% range on Wednesday before potentially pausing its fastest monetary policy tightening campaign since the 1980s. The ISM said its manufacturing PMI increased to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020. Economists polled by Reuters had forecast 46.8.
China non-manufacturing activity expands more slowly in April China’s non-manufacturing activity expanded at a slower pace in April, official data showed on Sunday, a discouraging sign for policymakers counting on services consumption to offset frailty in the factory sector amid slack global demand. The official non-manufacturing purchasing managers’ index (PMI) stood at 56.4 versus 58.2 in March, according to data from the National Bureau of Statistics, above the 50-point mark that separates expansion and contraction in activity on a monthly basis. The official composite PMI, which includes manufacturing and services, stood at 54.4, compared with 57.0 in March.
South Korea inflation hits 14-month low, backs view rate-hike cycle is over South Korea's consumer inflation eased for a third consecutive month to a 14-month low in April and the central bank expects the downward trend to persist for some time, supporting the market's view that its policy tightening cycle is over. The consumer price index (CPI) stood 3.7% higher in April than a year earlier, the Statistics Korea data showed on Tuesday, marking the slowest growth since February last year and following a 4.2% increase in March. It roughly matched a 3.75% rise tipped in a Reuters survey. The Bank of Korea (BOK) issued a broadly dovish statement, although it repeated that uncertainty remained high over the future path of inflation. Core inflation, which excludes volatile foods and energy items, held steady for a third consecutive month at 4.0% in April on an annual basis.
Dollar gains before Fed meeting, jobs data The 10-year government bond yield (interpolated) on the previous trading day was 2.54, +1.80 bps. The benchmark government bond yield (LB31DA) was 2.50, +2.00 bps. LB31DA could be between 2.20-2.70 Meantime, the latest closed US 10-year bond yields was 3.59, +15.00 bps. USDTHB on the previous trading day closed around 34.13 Moving in a range of 34.12-34.20 this morning. USDTHB could be closed between 34.00-34.50 today. The dollar rose to an almost two-week high against a basket of currencies on Monday before the Federal Reserve is expected to hike interest rates by an additional 25 basis points and after data showed that U.S. manufacturing pulled off a three-year low in April. Investors will focus on whether the U.S. central bank indicates that it expects to pause rate increases after May, or if it keeps alive the possibility of an additional hike in June or later when it concludes its two-day meeting on Wednesday. Inflation is seen as possibly keeping the Fed in a tightening cycle if it remains high, assuming that the labor market and other parts of the economy remain solid. The greenback rose after the Institute for Supply Management (ISM) said on Monday that its manufacturing PMI rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
