- USDTHB: moving in the range 34.55-34.65 this morning supportive level at 34.45 resistance level at 34.75
· SET Index: 1,494.0 (+0.19%), 13 Jul 2023
· S&P 500 Index: 4,510 (+0.84%), 13 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.58 (+0.17 bps), 13 Jul 2023
· US 10-year treasury yield: 3.76 (-10.0 bps), 13 Jul 2023
- U.S. PPI cools to 0.1% in June
- China's Q2 GDP seen rising 7.3% y/y but on low base, recovery fades
- Singapore’s economy grows slightly more than expected in Q2
- Dollar buckles on US disinflation signs as Fed nears end of hiking cycle
U.S. PPI cools to 0.1% in June Growth in U.S. producer prices eased by more than expected in June in the latest sign of fading inflationary pressures in the world's largest economy, bolstering the case for the Federal Reserve to step back from its aggressive policy tightening campaign after an expected interest rate hike later this month. According to data from the Bureau of Labor Statistics, the seasonally-adjusted producer prices for the month eased to 0.1% annually, decelerating from a downwardly revised mark of 0.9% in May. Economists had seen the figure rising by 0.4%. On a month-on-month basis, the number also ticked up by 0.1%, rebounding from a contraction of 0.4% in the prior month. Forecasts had called for an increase of 0.2%. The Fed is widely tipped to raise borrowing costs by another 25 basis points at their upcoming policy meeting in late July. Investing.com's Fed Rate Monitor Tool shows that there is a more than 91% chance that the central bank will lift rates at the gathering.
China's Q2 GDP seen rising 7.3% y/y but on low base, recovery fades China's economy likely grew 7.3% in the second quarter from a year earlier due to a low base, but momentum is rapidly faltering, a Reuters poll showed, raising expectations Beijing will have to roll out more stimulus measures soon. While the reading will be heavily skewed by economic pains caused by COVID-19 lockdowns last year, the expected expansion would be the highest since the second quarter of 2021, according to the median forecasts of 56 economists polled by Reuters. Gross domestic product grew a stronger than expected 4.5% in the first quarter, driven by pent-up demand after three years of COVID curbs, but momentum has faded since April as demand at home and abroad weakens.
Singapore’s economy grows slightly more than expected in Q2 Singapore’s economy grew slightly more than expected in the second quarter, data showed on Friday, as resilience in construction activity and the service industry helped offset a sharp decline in manufacturing. Gross Domestic Product (GDP) grew an annualized 0.7% in the three months to June 30, advance estimates from the Ministry of Trade and Industry showed. The figure was more than expectations for a rise of 0.6%, and higher than the 0.4% growth seen in the first quarter. GDP grew 0.3% from the prior quarter, with the city state dodging a technical recession after GDP shrank 0.4% quarter-on-quarter in the first three months of 2023. Local construction activity grew 6.6% and was one of the key supports to the economy, while demand for retail trade, IT services and accommodation and food services also helped buoy economic growth.
Dollar buckles on US disinflation signs as Fed nears end of hiking cycle The 10-year government bond yield (interpolated) on the previous trading day was 2.58, +0.17 bps. The benchmark government bond yield (LB31DA) was 2.58, +0.50 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.76, -10.00 bps. USDTHB on the previous trading day closed around 34.58 Moving in a range of 34.55-34.65 this morning. USDTHB could be closed between 34.20-34.70 today. The dollar sank to its lowest since April 2022 on Thursday, as cooling U.S. inflation bolstered expectations the Federal Reserve would hike interest rates just one more time this year, eroding the greenback's yield advantage over its peers. Against a basket of six currencies, the dollar index fell 0.8% to 99.738, after dropping earlier to 99.767, a new 15-month trough. The dollar index was headed for its biggest weekly slide in 2023. The euro rose 0.9% to $1.1220, after hitting a new 16-month high earlier in the session. The euro headed for a sixth daily gain, its longest stretch of rises against the dollar this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
