- USDTHB: moving in the range 34.54-34.72 this morning supportive level at 34.50 resistance level at 34.80
· SET Index: 1,529.0 (-1.38%), 3 Aug 2023
· S&P 500 Index: 4,501.9 (-0.26%), 3 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.63 (+2.21 bps), 3 Aug 2023
· US 10-year treasury yield: 4.20 (+12.0 bps), 3 Aug 2023
- US labor market resilient; productivity rebounds in second quarter
- US services sector slows in July while prices pick up
- China's July services activity expands at quicker pace
- Dollar hits 4-week peak, then eases, sterling lower after BOE hike
US labor market resilient; productivity rebounds in second quarter The number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight. Initial claims for state unemployment benefits increased 6,000 to a seasonally adjusted 227,000 for the week ended July 29, the Labor Department said. The increase was in line with economists' expectations. Claims are in the lower end of their 194,000-265,000 range for this year, in part benefiting from difficulties adjusting the data for seasonal patterns. Nonfarm payrolls likely increased by 200,000 jobs in July after rising by 209,000 in June, according to a Reuters poll of economists. The unemployment rate is forecast to be unchanged at 3.6% in July. Nonfarm productivity, which measures hourly output per worker, increased at a 3.7% annualized rate in the second quarter after declining at a 1.2% pace in the January-March quarter.
US services sector slows in July while prices pick up The U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up, suggesting a long and slow road to low inflation. The Institute for Supply Management (ISM) said its non-manufacturing PMI fell to 52.7 last month from 53.9 in June. 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 would decrease to 53.0. At current levels, the non-manufacturing PMI is consistent with an economy that continues to chug along despite 525 basis points in interest rate hikes from the Federal Reserve since March 2022. Demand for services is being underpinned by a shift in spending away from goods.
China's July services activity expands at quicker pace China's services activity expanded at a slightly faster pace in July, supported by a jump in business in the summer travel season, a private-sector business survey showed on Thursday, partly offsetting the drag from the weak manufacturing sector. The Caixin/S&P Global services purchasing managers' index (PMI) rose to 54.1 in July from 53.9 in June, marking an expansion of business activity across the services sector for the seventh straight month. The 50-point mark separates expansion from contraction in activity. The data was in contrast to an official survey on Monday which showed services activity has continued to soften. Analysts said the different compositions of surveyed firms and methodologies may account for the divergence.
Dollar hits 4-week peak, then eases, sterling lower after BOE hike The 10-year government bond yield (interpolated) on the previous trading day was 2.63, +2.21 bps. The benchmark government bond yield (LB31DA) was 2.60, +3.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.20, +12.00 bps. USDTHB on the previous trading day closed around 34.56. Moving in a range of 34.54-34.72 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar slid from a four-week peak on Thursday after U.S. labor market data failed to impress a day before a key jobs report, and as Treasury yields rose but eased at the short end. Nonfarm-productivity rose to an annualized 3.7% to help curb growth in labor costs and aid an improving U.S. inflation outlook. But labor productivity has grown at a 1.4% rate since the fourth quarter of 2019, well below the long-term average since 1947 of 2.1%. Other data showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs fell to an 11-month low in July amid a tight labor market. The dollar also has been bolstered by the carry trade, when investors borrow in currencies with low interest rates and invest in the dollar or dollar-based assets.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
