- USDTHB: moving in the range 36.65-36.73 this morning supportive level at 36.60 resistance level at 36.90
· SET Index: 1,497.2 (+0.21%), 27 Sep 2023
· S&P 500 Index: 4,274.5 (-1.46%), 27 Sep 2023
· Thai 10-year government bond yield (interpolated): 3.22 (-1.82 bps), 27 Sep 2023
· US 10-year treasury yield: 4.61 (+5.00 bps), 27 Sep 2023
- Economists weigh potential impacts of a US government shutdown
- US durable goods orders beat expectations in boost to economy in third-quarter
- Thai central bank unexpectedly hikes key rate, raises 2024 growth outlook
- Dollar sticks near 10-month high, keeping heat on yen
Economists weigh potential impacts of a US government shutdown Economists from notable institutions such as EY-Parthenon, Goldman Sachs, KPMG, and Wall Street are scrutinizing the potential implications of a federal government shutdown on the U.S. economy. While there is a general consensus that brief shutdowns may not significantly affect growth or lead to a recession, concerns are mounting over prolonged ones. A longer shutdown could potentially hamper economic progress and influence President Biden's re-election odds. Several complicating factors are adding to the uncertainty. These include high-interest rates, which could strain borrowers and dampen investment. Another concern is the resumption of federal student loan payments, which could further burden households and potentially reduce consumer spending.
US durable goods orders beat expectations in boost to economy in third-quarter Orders for long-lasting U.S. manufactured goods rose in August as an increase in machinery and other products offset a drop in civilian aircraft, and business spending on equipment appeared to regain momentum after faltering early in the third quarter. The report from the Commerce Department also showed shipments of capital goods rebounding sharply last month, a sign of resilience in both business investment and the overall economy despite the Federal Reserve's aggressive monetary policy tightening. The surge in shipments compensated for downward revisions to July's data, prompting some economists to raise their gross domestic product growth estimates for this quarter. But others viewed the rise in the value of orders and shipments as having been flattered by higher prices as inflation picked up in August.
Thai central bank unexpectedly hikes key rate, raises 2024 growth outlook Thailand's central bank unexpectedly raised its key interest rate for an eighth straight meeting, saying economic growth and inflationary pressures should pick up next year despite rising global uncertainties. The central bank said the rate had now reached a 'neutral' level and was appropriate for supporting long-term sustainable growth in Southeast Asia's second-largest economy. Economists expected move could mark the end of a year-long tightening cycle, which has seen the key rate raised by a total of 200 basis points (bps) since August 2022 to curb surging inflation. The Bank of Thailand's (BOT) monetary policy committee voted unanimously to hike the one-day repurchase rate by 25 bps to 2.50%, the highest in a decade. Only six of 27 economists polled by Reuters had predicted a quarter-point hike, while the remaining 21 had forecast no change.
Dollar sticks near 10-month high, keeping heat on yen The 10-year government bond yield (interpolated) on the previous trading day was 3.22, -1.82 bps. The benchmark government bond yield (LB31DA) was 3.33, -0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.61, +5.00 bps. USDTHB on the previous trading day closed around 36.51. Moving in a range of 36.65-36.73 this morning. USDTHB could be closed between 36.60-36.90 today. The dollar clung near a 10-month high against a basket of its peers, keeping the yen under pressure near a key intervention zone as investors size up upbeat U.S. economic data and fresh comments from Federal Reserve officials. Federal Reserve Bank of Minneapolis President Neel Kashkari was one among several Fed voices to caution markets on the possibility of more hikes, saying on Wednesday that ample evidence of ongoing economic strength meant that more tightening might be in the pipeline. Fed Chair Jerome Powell is scheduled to speak later on Thursday, giving markets further clues into the future path of U.S. monetary policy. The Fed officials' remarks come as economic data out of the U.S. continues to surprise with its strength, defying investor expectations for a slowdown.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
