- USDTHB: moving in the range 33.82-33.85 this morning supportive level at 33.75 resistance level at 34.00
· SET Index: 1,567.4 (-0.14%), 11 May 2023
· S&P 500 Index: 4,130.6 (-0.17%), 11 May 2023
· Thai 10-year government bond yield (interpolated): 2.51 (+0.32 bps), 11 May 2023
· US 10-year treasury yield: 3.39 (-4.00 bps), 11 May 2023
- US weekly jobless claims hit 1-1/2-year high; inflation subsiding
- Bank of England hikes key rate by 25 basis points to 4.5%
- Euro zone consumers raise inflation expectations
- Dollar stronger as market rethinks monetary policy outlook
US weekly jobless claims hit 1-1/2-year high; inflation subsiding The number of Americans filing new claims for unemployment benefits jumped to a 1-1/2-year high last week, pointing to cracks in the labor market as demand slows, potentially giving the Federal Reserve room to halt further interest rate increases next month. With demand cooling, inflation pressures are subsiding. Producer prices rebounded modestly in April, leading to the smallest annual increase in wholesale inflation in more than two years, other data from the Labor Department showed on Thursday. The reports were seen as consistent with most economists' expectations of a recession by the end of the year. Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 264,000 for the week ended May 6, the highest reading since October 2021. Economists polled by Reuters had forecast 245,000 claims for the latest week.
Bank of England hikes key rate by 25 basis points to 4.5% The Bank of England increased its key interest rate by another 25 basis points on Thursday, bringing borrowing costs up to 4.50% - their highest level since 2008. The hike, which was widely expected by economists, was supported by seven of the nine-member Monetary Policy Committee, while two voted to keep rates unchanged. Policymakers have now chosen to lift rates at 12 straight meetings. Like many other central banks in major economies, the BoE has embarked on a campaign of monetary tightening aimed at bringing down sky-high inflation. While price growth has shown early signs of moderating in places like the U.S. and the euro zone, it has remained stubbornly elevated at double-digit levels in Britain. The consumer price index in the country jumped by an annualized rate of 10.1% in March, although the BoE anticipates that inflation will decelerate sharply by the end of the year.
Euro zone consumers raise inflation expectations Euro zone consumers raised their inflation expectations in March for the first time since the autumn, even as the rate of price growth fell and the European Central Bank kept raising interest rates, an ECB survey showed on Thursday. The median respondent in the latest Consumer Expectation Survey saw prices growing by 5.0% in the coming 12 months, up from 4.6% in the previous survey round in February, the first increase since October. Longer-term expectations also increased sharply, with inflation three years ahead seen at 2.9% after a 2.4% reading a month earlier. These rises are an unwelcome development for an ECB that is trying to stop the current high rate of price growth from becoming entrenched.
Dollar stronger as market rethinks monetary policy outlook The 10-year government bond yield (interpolated) on the previous trading day was 2.51, +0.32 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 3.39, -4.00 bps. USDTHB on the previous trading day closed around 33.69 Moving in a range of 33.82-33.85 this morning. USDTHB could be closed between 33.50-34.00 today. The U.S. dollar rose against the euro and sterling on Thursday and set a more than one-week high against a basket of its major peers as traders sought safety after a series of economic data prompted a reassessment of their outlook for global monetary policy. The number of Americans filing new claims for unemployment benefits jumped to a 1-1/2-year high last week, pointing to cracks in the labor market as demand slows, potentially giving the Federal Reserve room to halt further interest rate increases next month. U.S. producer prices, on the other hand, showed a moderate rise last month, posting the smallest annual increase in producer inflation in more than two years.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
