- USDTHB: moving in the range 34.36-34.56 this morning supportive level at 34.30 resistance level at 34.50
· SET Index: 1,528.8 (+0.71%), 17 Jul 2023
· S&P 500 Index: 4,522.8 (+0.38%), 17 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.57 (-0.30 bps), 17 Jul 2023
· US 10-year treasury yield: 3.81 (-2.0 bps), 17 Jul 2023
- US banks warn stricter capital rules will raise prices
- Australia central bank hit pause as policy clearly restrictive, risking growth
- China's Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations
- Dollar decline slows as investors wait on Fed
US banks warn stricter capital rules will raise prices U.S. bank executives warned on Friday that looming higher capital requirements would raise prices for financial products and push activity into less regulated sectors as regulators weigh new rules to cushion against any potential losses. Federal banking regulators are expected to introduce proposals in the coming weeks requiring banks to keep more cash on hand to ensure the financial system remains stable. Federal Reserve Vice Chair for Supervision Michael Barr said this month that large firms need to hold more in reserve to guard against unknown risks. While detailed plans have not been announced, bank executives are already sounding warnings about the potential drawbacks. The Fed and other banking regulators are preparing to implement new risk-weighted requirements outlined in international standards agreed by the Basel Committee on Banking Supervision after the 2008 financial crisis.
Australia central bank hit pause as policy clearly restrictive, risking growth Australia's central bank decided to keep interest rates steady this month as policy was clearly restrictive and there was a risk a squeeze on household finances could lead to a sharp downturn and higher unemployment. However, the bank retained a warning that some tightening may still be required to bring inflation to heel, wary that the wider effects on inflation from higher rents, weak productivity and higher electricity prices had not been fully captured. Minutes of the July 4 policy meeting out on Tuesday showed the Reserve Bank of Australia's (RBA) board considered raising the cash rate by 25 basis points to 4.35%, before deciding on a pause, acknowledging that both set of arguments were strong.
China's Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations China's economy grew at a frail pace in the second quarter, although the annual figure was flattered by base effects, data showed on Monday, with overall momentum faltering rapidly due to weakening demand at home and abroad. Gross domestic product (GDP) grew just 0.8% in April-June from the previous quarter, data released by the National Bureau of Statistics showed, versus analysts' expectations in a Reuters poll for a 0.5% increase and compared with a 2.2% expansion in the first quarter. On a year-on-year basis, GDP expanded 6.3% in the second quarter, accelerating from 4.5% in the first three months of the year, but the rate was below the forecast for growth of 7.3%.
Dollar decline slows as investors wait on Fed The 10-year government bond yield (interpolated) on the previous trading day was 2.57, -0.30 bps. The benchmark government bond yield (LB31DA) was 2.57, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.83, +7.00 bps. USDTHB on the previous trading day closed around 34.68 Moving in a range of 34.36-34.56 this morning. USDTHB could be closed between 34.30-34.80 today. The dollar dipped against a basket of currencies on Monday after last week suffering its largest weekly decline this year as Treasury yields tumbled but held above more than one-year lows reached on Friday with no major catalysts to drive market direction. This week is likely to see the dollar consolidate as investors wait on the Federal Reserve’s meeting next week, when the U.S. central bank is expected to hike rates by an additional 25 basis points. The pace of last week’s dollar decline “seemed unusually large,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, noting that the market should steady and see a firmer dollar this week. This week’s main U.S. economic focus will be the retail sales report for June on Tuesday, though the data is unlikely to sway the path of monetary policy.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
