- USDTHB: moving in the range 35.07-35.185 this morning supportive level at 34.95 resistance level at 35.25
· SET Index: 1,525.9 (+0.44%), 21 Aug 2023
· S&P 500 Index: 4,399.8 (+0.69%), 21 Aug 2023
· Thai 10-year government bond yield (interpolated): 2.75 (+1.01 bps), 21 Aug 2023
· US 10-year treasury yield: 4.34 (+8.00 bps), 21 Aug 2023
- S&P downgrades multiple US banks citing 'tough' operating conditions
- German producer prices post first fall since late 2020
- Thai Q2 GDP growth slows sharply amid weak global demand, govt cuts outlook
- US dollar slips as traders cautious before Fed's Jackson Hole symposium
S&P downgrades multiple US banks citing 'tough' operating conditions S&P Global on Monday cut credit ratings and revised its outlook for multiple U.S. banks, following a similar move by Moody’s, warning that funding risks and weaker profitability will likely test the sector's credit strength. S&P downgraded the ratings of Associated Banc-Corp and Valley National Bancorp on funding risks and a higher reliance on brokered deposits. It also downgraded UMB Financial Corp, Comerica Bank and Keycorp, citing large deposit outflows and prevailing higher interest rates. A sharp rise in interest rates is weighing on many U.S. banks' funding and liquidity, S&P said in a summarized note, adding that deposits held by Federal Deposit Insurance Corp (FDIC)-insured banks will continue to decline as long as the Federal Reserve is "quantitatively tightening.“
German producer prices post first fall since late 2020 German producer prices decreased more than expected on the year in July, their first fall in over two-and-a-half years, as easing energy price pressures added to hopes that inflation in Europe's largest economy could abate further. July producer prices were down 6.0% compared with the same month last year, when producer prices soared as a consequence of the war in Ukraine. Analysts had expected a drop of 5.1% in a poll by Reuters. It was the first year-on-year decline in producer prices since November 2020 and the sharpest decline since October 2009 during the financial crisis. Energy prices sank 19.3% in July on the year, as electricity prices slumped: Across all customer groups, electricity prices fell by 30.0%.
Thai Q2 GDP growth slows sharply amid weak global demand, govt cuts outlook Thailand's economy grew at a much slower-than-expected pace in the second quarter, data showed on Monday, as weak exports and slower investment undercut strength in tourism and prompted the government to downgrade its 2023 growth forecast. Southeast Asia's second-largest economy has been hobbled by slackening global growth, led by its main trading partner China and falling investor confidence due to a protracted period without a government following elections in May. Thailand's gross domestic product grew 1.8% in the April-June period from a year earlier, the National Economic and Social Development Council (NESDC) said, well below the 3.1% expansion expected by economists in a Reuters poll. GDP had risen 2.6% year-on-year in the first quarter, revised down from 2.7% stated earlier.
US dollar slips as traders cautious before Fed's Jackson Hole symposium The 10-year government bond yield (interpolated) on the previous trading day was 2.75, +1.01 bps. The benchmark government bond yield (LB31DA) was 2.73, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.34,+8.00 bps. USDTHB on the previous trading day closed around 35.30. Moving in a range of 35.07-35.185 this morning. USDTHB could be closed between 34.95-35.25 today. The dollar inched lower against a basket of its peers on Monday, snapping a five-week winning streak, as investors bided time ahead of the U.S. Federal Reserve's Jackson Hole, Wyoming, symposium starting on Friday, with expectations that central banks could keep rates higher for longer. The dollar index, which measures the currency against six other majors, fell 0.077% and was last seen at 103.290, moving away from Friday's two-month high of 103.68. The euro was up 0.21% at $1.0896 while sterling was last trading at $1.2762, up 0.21%. The Japanese yen, which is on intervention watch, weakened 0.55% versus the greenback at 146.21 per dollar, with analysts now seeing the threshold for intervention at around 150 per dollar. Meanwhile, the offshore yuan, also on watch for intervention, rose 0.3% versus the greenback at 7.2853 per dollar.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
