- USDTHB: moving in the range 34.43-34.60 this morning supportive level at 34.40 resistance level at 34.60
· SET Index: 1,523.8 (-0.36%), 24 Jul 2023
· S&P 500 Index: 4,554.6 (+0.40%), 24 Jul 2023
· Thai 10-year government bond yield (interpolated): 2.60 (-0.62 bps), 24 Jul 2023
· US 10-year treasury yield: 3.86 (+2.0 bps), 24 Jul 2023
- U.S. business activity growth slows as services soften
- Worsening euro zone business downturn reignites recession fears
- Thai industrial sentiment rises in June, but political uncertainty a concern
- Dollar clings to gains with central banks in focus
U.S. business activity growth slows as services soften U.S. business activity slowed to a five-month low in July, dragged down by decelerating service-sector growth, closely watched survey data on Monday showed, but falling input prices and slowed hiring indicate the Federal Reserve could be making progress on important fronts in its bid to reduce inflation. S&P Global said its flash U.S. Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 52 in July from 53.2 in June. July's reading showed the sixth straight month of growth but was restrained by softening conditions in the service sector. Readings above 50 indicate expansion. The slowdown may be viewed positively at the Fed, which is keen to see activity cool to lower inflation.
Worsening euro zone business downturn reignites recession fears Euro zone business activity shrank much more than expected in July as demand in the bloc's dominant services industry declined while factory output fell at the fastest pace since COVID-19 first took hold. The decline was broad-based with the euro zone's two biggest economies - Germany and France - both in contractionary territory and will likely add to fears the bloc will slip back into recession. The survey also indicated the European Central Bank's sustained campaign of interest rate rises is starting to take its toll on consumers and denting the services sector. This will pose questions for the bank, which meets on Thursday, as it weighs its fight against record inflation against the economic damage it could cause.
Thai industrial sentiment rises in June, but political uncertainty a concern Thailand's industrial sentiment rose for the first time in three months in June, bolstered by higher domestic demand, but sluggish exports and uncertainty over the formation of a new government remained a worry. The Federation of Thai Industries (FTI) said its industrial sentiment index rose to 94.1 in June from 92.5 in May. While domestic demand has been supported by a continued recovery in the vital tourism sector, soft global demand continues to crimp Thai exports, a key driver of Thailand's growth, the FTI said in a statement. The FTI expects 29 to 30 million foreign tourists this year, compared with nearly 40 million in pre-pandemic 2019. Political uncertainty persists after Thailand's May national election as a new government has yet to be formed.
Dollar clings to gains with central banks in focus The 10-year government bond yield (interpolated) on the previous trading day was 2.60, -0.62 bps. The benchmark government bond yield (LB31DA) was 2.60, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 3.86, +2.00 bps. USDTHB on the previous trading day closed around 34.49 Moving in a range of 34.43-34.60 this morning. USDTHB could be closed between 34.20-34.70 today. The dollar clung to gains against the euro on Monday after recent economic data showed a stronger U.S. economy and a slowing euro zone as traders look beyond a trio of central bank meetings this week for clues to the outlook for monetary policy. A closely-watched purchasing managers' survey showed that U.S. business activity slowed to a five-month low in July, dragged down by decelerating service sector growth, but the data was better than similar surveys out of Europe. Falling U.S. input prices and slower hiring indicated the Federal Reserve could be making progress on important fronts in its bid to reduce inflation. The euro was down 0.49% at $1.1069 while sterling was last trading at $1.2823, down 0.25% on the day, kicking off a busy week for central bank meetings with investors expecting rate hikes in Europe and the United States.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
