- USDTHB: moving in the range 34.635-34.715 this morning supportive level at 34.50 resistance level at 34.80
· SET Index: 1,530.5 (+0.09%), 4 Aug 2023
· S&P 500 Index: 4,478.0 (-0.53%), 4 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.63 (+0.02 bps), 4 Aug 2023
· US 10-year treasury yield: 4.05 (-15.0 bps), 4 Aug 2023
- US job growth slowing, but wage gains remain strong
- Japan's economy to pick up in Q2 despite slowing global demand
- China's July economic losses from disasters exceed January-June
- Dollar slides after slowing U.S. jobs growth in July
US job growth slowing, but wage gains remain strong Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department's survey of establishments showed. Data for June was revised lower to show 185,000 jobs added instead of the previously reported 209,000. The job growth in June was the slowest since December 2020. Household employment increased by 268,000 jobs, more than offsetting a rise of 152,000 in the labor force. As a result, the unemployment rate fell to 3.5% from 3.6% in June, dropping back to levels last seen more than 50 years ago. That is well below the Fed's latest median estimate of 4.1% by the fourth quarter of this year. With the labor market still tight, wages continued to rise at a brisk clip. Average hourly earnings climbed 0.4%, matching the gain in June. That kept the year-on-year increase in wages at 4.4%. Wages are now rising faster than inflation, boosting households' purchasing power and underpinning consumer spending as well as keeping the overall economy afloat.
Japan's economy to pick up in Q2 despite slowing global demand Japan's economy likely grew an annualized 3.1% in April-June to mark a third straight quarter of expansion, according to a Reuters poll, helped by resilience in exports despite slowing global demand. The increase would follow an annualized 2.7% in the first quarter. On a quarter-on-quarter basis, the economy probably expanded 0.8%. The data would be welcomed by the Bank of Japan which wants a slow but steady phase-out of its massive stimulus program and took steps last week to allow long-term interest rates to rise more. External demand likely added 0.9% point to gross domestic product growth in April-June, after shaving off 0.3% point in the first three months of this year, the poll showed. Capital expenditure is expected to have risen 0.4% after a 1.4% increase and the poll called for private consumption to have edged up 0.1%, slowing from a 0.5% gain.
China's July economic losses from disasters exceed January-June China's direct economic losses from natural disasters surged to 41.18 billion yuan ($5.74 billion) in July, more than in January to June combined, driven by severe weather as two powerful typhoons hit the country in one month. The impact of floods, while common in China in summer, has grown more pronounced this year, affecting over 7 million people nationwide in July, when Beijing was struck by the worst rains in 140 years after the capital's hottest June on record. August, when rainfall usually peaks and summer temperatures soar, is set for further economic impact from floods and heatwaves. Rainfall in northeastern provinces could be as much as 50% higher than normal in August, China's national forecaster have warned.
Dollar slides after slowing U.S. jobs growth in July The 10-year government bond yield (interpolated) on the previous trading day was 2.63, +0.02 bps. The benchmark government bond yield (LB31DA) was 2.63, +0.00 bps. LB31DA could be between 2.30-2.80. Meantime, the latest closed US 10-year bond yields was 4.05, -15.00 bps. USDTHB on the previous trading day closed around 34.72. Moving in a range of 34.635-34.715 this morning. USDTHB could be closed between 34.50-35.00 today. The dollar fell on Friday, paring almost all the week's gains, after slowing U.S. jobs growth in July encouraged hopes of a soft economic landing but higher wages suggested the Federal Reserve may need to keep interest rates higher for longer. The U.S. economy added fewer jobs than expected last month. However, solid wage gains and a drop in unemployment to 3.5% signaled continued tightness in the labor market. Nonfarm payrolls increased by 187,000 jobs last month, the Labor Department's survey of households showed, less than a Reuters' survey of economists who forecast growth of 200,000.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
