- USDTHB: moving in the range 34.435-34.50 this morning supportive level at 34.35 resistance level at 34.55
· SET Index: 1,550.3 (-0.37%), 2 Aug 2023
· S&P 500 Index: 4,513.4 (-1.39%), 2 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.61 (+0.31 bps), 2 Aug 2023
· US 10-year treasury yield: 4.08 (+3.0 bps), 2 Aug 2023
- Small businesses boost US private payrolls in July
- UK public inflation expectations fall in July
- South Korea July consumer inflation slowest in 25 months
- Dollar shrugs off Fitch's U.S. downgrade, advances on strong jobs data
Small businesses boost US private payrolls in July U.S. private payrolls rose more than expected in July as small businesses boosted hiring, pointing to continued labor market resilience that could shield the economy from a recession. The ADP National Employment also showed a moderation in wage growth, which bodes well for the inflation outlook. It added to recent upbeat data ranging from inflation to consumer spending in raising hopes that the economy will have the "soft landing" envisioned by Federal Reserve officials. Private payrolls increased by 324,000 jobs last month after surging by 455,000 in June, according to ADP. Economists polled by Reuters had forecast private employment would increase by 189,000. Wages for workers remaining in their jobs increased 6.2% in the 12 months through July after advancing 6.4% in June.
UK public inflation expectations fall in July The British public's expectations for future inflation fell in July, U.S. bank Citi said on Wednesday, offering some relief to the Bank of England which is expected to announce its 14th back-to-back interest rate increase on Thursday. Public expectations for inflation in 12 months' time fell sharply to 4.3% from 5.0% in June, according to the monthly survey conducted by Citi with market research company YouGov. Expectations for inflation in five to 10 years' time also fell back to its pre-2020 average at 3.2% from 3.3% in June. The BoE is closely watching measures of inflation expectations, including the Citi/YouGov survey, as it worries about long-term price pressures in the British economy.
South Korea July consumer inflation slowest in 25 months South Korea's consumer inflation cooled more than expected in July to its slowest in 25 months, official data showed on Wednesday, supporting market views that the monetary tightening cycle was over contrary to the central bank's hawkish rhetoric. The consumer price index stood 2.3% higher in July than a year earlier, after a 2.7% rise in June and compared with a median 2.4% increase forecast in a Reuters survey of economists. It marked the weakest annual increase since June 2021, according to Statistics Korea, and compared with a near 24-year high of 6.3% in July 2022 and the central bank's medium-term target of 2%. It was also the second consecutive month the consumer price data came in lower than market expectations.
Dollar shrugs off Fitch's U.S. downgrade, advances on strong jobs data The 10-year government bond yield (interpolated) on the previous trading day was 2.61, +0.31 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 4.08, +3.00 bps. USDTHB on the previous trading day closed around 34.35. Moving in a range of 34.435-34.50 this morning. USDTHB could be closed between 34.00-34.50 today. The dollar rose on Wednesday as investors shrugged off Fitch's U.S. credit rating downgrade while data showing a larger-than-expected increase in private payrolls in July bolstered the greenback as it points to labor market resilience. Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed, more than an increase of 189,000 that economists polled by Reuters had forecast. The U.S. labor market is gradually slowing after the Federal Reserve's hiking of interest rates by 525 basis points since March 2022. But the economy remains strong, as indicated by the Atlanta Fed's GDPNow running estimate of real GDP growth for the third quarter at 3.9%.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
