- USDTHB: moving in the range 33.70-33.98 this morning supportive level at 33.65 resistance level at 33.80
· SET Index: 1,561.4 (-0.39%), 12 May 2023
· S&P 500 Index: 4,124.1 (-0.16%), 12 May 2023
· Thai 10-year government bond yield (interpolated): 2.50 (-0.98 bps), 12 May 2023
· US 10-year treasury yield: 3.46 (+7.00 bps), 12 May 2023
- US consumer sentiment plummets to six-month low on debt ceiling debacle
- UK economy makes slow start to 2023 as inflation headwinds persist
- Hong Kong Q1 GDP grew 2.7% y/y, sees tourism, consumption driving recovery this year
- Dollar on pace for biggest weekly rise since February
US consumer sentiment plummets to six-month low on debt ceiling debacle U.S. consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government's borrowing cap could trigger a recession. The University of Michigan's survey on Friday also showed consumers' long-term inflation expectations jumping this month to their highest reading since 2011, bad news for the Federal Reserve after it signaled last week that it could pause the U.S. central bank's fastest monetary policy tightening cycle since the 1980s. The survey's preliminary reading on the overall index of consumer sentiment came in at 57.7 this month, the lowest reading since last November and down from 63.5 in April. Economists polled by Reuters had forecast a preliminary reading of 63.0. The survey's current economic conditions index fell to 64.5 from 68.2 in April. Its measure of consumer expectations dropped to 53.4 from 60.5 in the prior month.
UK economy makes slow start to 2023 as inflation headwinds persist Britain’s economy grew sluggishly in early 2023, better than the shallow recession once expected, but an unexpectedly sharp drop in output in March underscored how fragile its recovery remains. Gross domestic product (GDP) edged up 0.1% in the first three months of the year, official data showed on Friday, the same tepid pace as in the final quarter of 2022 and in line with economists’ forecast in a Reuters poll. Output was 0.2% higher than a year earlier, the Office for National Statistics said. But GDP in March alone dropped 0.3%, compared with poll forecasts for it to hold steady. While industrial output and construction grew, the much larger services sector dropped 0.4%, reflecting weak car sales and retail, hurt by unusually rainy weather and high inflation.
Hong Kong Q1 GDP grew 2.7% y/y, sees tourism, consumption driving recovery this year Hong Kong's economy grew 2.7% in the first quarter from a year earlier, government data showed on Friday, thanks to a strong recovery of inbound tourism and domestic demand which would remain drivers for growth this year. It was the first quarter of growth after four consecutive ones of contraction. The city's economy shrank 4.1% in the fourth quarter of 2022. On a seasonally-adjusted quarterly basis, the economy grew 5.3% between January and March. The government has maintained its economic growth forecast for 2023 at between 3.5% and 5.5%, after a 3.5% decline in 2022. The improving economic situation and prospects should boost domestic demand, though tight financial conditions will remain a constraint, Leung said in a separate statement
Dollar on pace for biggest weekly rise since February The 10-year government bond yield (interpolated) on the previous trading day was 2.50, -0.98 bps. The benchmark government bond yield (LB31DA) was 2.52, -2.00 bps. LB31DA could be between 2.20-2.70 Meantime, the latest closed US 10-year bond yields was 3.46, +7.00 bps. USDTHB on the previous trading day closed around 33.92 Moving in a range of 33.70-33.98 this morning. USDTHB could be closed between 33.50-34.00 today. The U.S. dollar rose against the euro and sterling on Friday and was on track for its biggest weekly gain since February, as investors shifted to safe havens after consumer sentiment data fueled concern about the U.S. debt ceiling and monetary policy. A University of Michigan survey on Friday showed May U.S. consumer sentiment slumped to a six-month low on worries that political dispute over raising the federal government's borrowing cap could trigger a recession. Consumers' long-term inflation expectations jumped to their highest since 2011. That could influence the Federal Reserve which signaled last week that it could pause its interest-rate hikes. Recent data showing a slowing economy has boosted the case that the Fed will pause hiking rates at its June meeting.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
