- USDTHB: moving in the range 34.35-34.875 this morning supportive level at 34.70 resistance level at 35.00
· SET Index: 1,537.6 (-1.25%), 20 Jun 2023
· S&P 500 Index: 4,388.7 (-0.47%), 20 Jun 2023
· Thai 10-year government bond yield (interpolated): 3.62 (-0.07 bps), 20 Jun 2023
· US 10-year treasury yield: 3.74 (-3.0 bps), 20 Jun 2023
- Euro zone May inflation confirmed at 6.1% yr/yr, core eases
- Japan Finance Minister says no change in FX policy after US report
- China cuts lending benchmark rate as economic recovery sputters
- Dollar nudges up, sterling near 14-month highs ahead of BoE decision
New US home construction surges by most in 3 decades in May Groundbreaking on U.S. single-family homebuilding projects surged in May by the most in more than three decades and permits for future construction also climbed, suggesting the housing market may be turning a corner after getting clobbered by Federal Reserve interest rate hikes. Still, even with the Fed skipping a rate hike this month for the first time since early 2022, credit conditions remain in the process of tightening, and that could make it challenging for builders heavily reliant on construction and development loans to keep pace with May's rebound in the months ahead. Indeed, economists noted that multifamily construction projects that had secured financing last year contributed to May's gains and may level off as the year progresses as new financing becomes harder to obtain.
South Korea producer inflation slowest in almost 2-1/2 years South Korea’s producer inflation slowed in May to its weakest pace in nearly 2-1/2 years, central bank data showed on Wednesday, due mostly to weaker oil prices. The producer price index stood 0.6% higher in May from the same month a year before, after a 1.6% rise in April, according to the Bank of Korea (BOK). The annual rate weakened for an 11th consecutive month and marked the slowest level since December 2020. “There are both upside and downside factors mixed in June, so it is unclear whether the rate will swing to a fall next month,” a BOK official said during a media briefing. The index fell 0.3% on a monthly basis, accelerating from a 0.1% fall in April, with coal and petroleum products leading the decline.
Philippine central bank on hold for rest of year, cut in early 2024 The Philippine central bank will leave its key interest rate unchanged at 6.25% for a second straight meeting on Thursday and the remainder of the year as price pressures ease, a Reuters poll of economists found. Inflation has steadily decreased from a 14-year peak in January and slowed for the fourth straight month in May to 6.1%, although still well above the 2-4% target range. Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla said on Monday that expectations inflation will fall below 4% before year-end is "a good reason to pause.“ All 24 economists polled June 13-19 forecast the BSP will hold its benchmark overnight borrowing rate at 6.25% at its policy meeting on June 22.
Dollar finds footing on housing data as yuan falters The 10-year government bond yield (interpolated) on the previous trading day was 2.62, -0.07 bps. The benchmark government bond yield (LB31DA) was 2.615, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.74, -3.00 bps. USDTHB on the previous trading day closed around 34.76 Moving in a range of 34.83-34.875 this morning. USDTHB could be closed between 34.50-35.00 today. The U.S. dollar was firm in Asia trade on Wednesday following surprisingly strong U.S. housing data, while the yuan and Aussie dollar nursed losses and focus turned to Federal Reserve Chair Jerome Powell's appearance before Congress later in the day. Single family housing starts surged 21.7% in May against expectations they'd be more or less flat. Traders discounted it somewhat since the jump wasn't led by a leap in permits, but it still gave the dollar a boost ahead of Powell's testimony. The greenback was marginally stronger at $1.0916 per euro overnight and steady early in the Asia session. The yen was also firm at 140.50 per dollar ahead of an appearance by Bank of Japan Governor Kazuo Ueda on Wednesday. The Aussie and yuan were Tuesday's largest losers and were in no mood for a bounce early on Wednesday. China had cut rates by less than expected and while its post-COVID recovery stalls, hoped-for major stimulus is yet to arrive.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
