- USDTHB: moving in the range 35.065-35.15 this morning supportive level at 35.00 resistance level at 35.30
· SET Index: 1,490.5 (+0.00%), 7 Jul 2023
· S&P 500 Index: 4,399.0 (-0.29%), 6 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.57 (+1.28 bps), 7 Jul 2023
· US 10-year treasury yield: 4.06 (+1.0 bps), 7 Jul 2023
- U.S. economy adds 209,000 jobs in June
- U.S. service sector picks up in June; inflation gradually slowing
- Euro zone retail sales flat in May, still down year-on-year
- Dollar slips as US job growth slows in June, yen jumps
U.S. economy adds 209,000 jobs in June The U.S. economy added jobs at a slower-than-anticipated pace in June, but labor conditions remain largely tight as Federal Reserve officials prepare for an upcoming interest rate decision later this month. The Labor Department's closely-watched employment report Friday showed that nonfarm payrolls rose by 209,000 last month, cooling from a downwardly revised mark of 306,000 in May. Economists had expected the figure to increase by 225,000. Meanwhile, monthly growth in average hourly earnings remained unchanged at 0.4%, while the unemployment rate decelerated slightly to 3.6% from 3.7%. Fed policymakers have pointed to a loosening in the tight jobs market as a major objective of its recent year-long campaign of rate rises aimed at corralling elevated inflation.
U.S. service sector picks up in June; inflation gradually slowing The U.S. services sector grew faster than expected in June as new orders picked up, but a measure of prices paid by businesses for inputs fell to more than a three-year low, suggesting that the closely watched services inflation would continue to cool. The Institute for Supply Management (ISM) said on Thursday that its non-manufacturing PMI increased to 53.9 last month from 50.3 in May. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the non-manufacturing PMI rising to 51.0. With the labor market still tight and inflation elevated, the U.S. central bank is expected to resume raising rates this month after skipping in June.
Euro zone retail sales flat in May, still down year-on-year Retail sales in the euro zone were unchanged in May, Eurostat said on Thursday, as increased spending on non-food items offset declines for food and automotive fuel. Retail sales volumes in the 20 nations sharing the euro currency were unchanged from April and were 2.9% lower year-on-year. That compared with average forecasts in a Reuters poll of economists of a 0.2% monthly rise and a 2.7% decline from a year earlier. Consumption has been sluggish as real incomes fall and households are now spending a larger part of their incomes on expensive energy and on credit and mortgage repayments, eroding demand for other goods. Households have also increased their savings because of higher rates and as a precaution at a time of low economic growth.
Dollar slips as US job growth slows in June, yen jumps The 10-year government bond yield (interpolated) on the previous trading day was 2.57, +1.28 bps. The benchmark government bond yield (LB31DA) was 2.56, +1.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.06, +10.00 bps. USDTHB on the previous trading day closed around 35.25 Moving in a range of 35.065-35.15 this morning. USDTHB could be closed between 35.00-35.50 today. The dollar slumped on Friday after signs of a less resilient U.S. labor market reduced the outlook for how long the Federal Reserves will keep interest rates higher, while the yen surged on concerns the 10-year Treasury's yield rose above 4%. The U.S. economy added the fewest jobs in 2-1/2 years in June, the Labor Department said in an employment report that also showed 110,000 fewer jobs were created in April and May than earlier reported. A jump in the number of people working part-time for economic reasons also suggested a weaker labor market, but the pace of job growth remains strong and with inflation still double the Fed's target rate, a rate hike this month is likely.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
