- USDTHB: moving in the range 36.325-36.36 this morning supportive level at 36.15 resistance level at 36.45
· SET Index: 1,456.0 (+1.49%), 11 Oct 2023
· S&P 500 Index: 4,377.0 (+0.95%), 11 Oct 2023
· Thai 10-year government bond yield (interpolated): 3.30 (-6.06 bps), 11 Oct 2023
· US 10-year treasury yield: 4.58 (-8.00 bps), 11 Oct 2023
- Fed officials hint at cautious approach to rate hikes amid tightening markets
- Euro zone consumers see inflation slightly above ECB target for years
- Chinese vehicle sales rise 5% in September, new-energy cars sector sees 10.7% YoY growth
- Dollar steady on underlying moderate PPI data, dovish Fed officials
Fed officials hint at cautious approach to rate hikes amid tightening markets Federal Reserve Governor Christopher Waller indicated a potential shift in the US central bank's approach to interest rate adjustments during the E2 Summit. Amid tightening financial markets, Waller suggested that the Fed could adopt an observant stance before deciding on further modifications to interest rates. The US economy has shown surprising resilience despite an aggressive rate-hiking campaign that escalated its benchmark interest rate from almost zero to a target range of 5.25%-5.5% within two years. Waller pointed out that the financial markets are essentially doing some of the Fed's work, thereby potentially reducing the need for further tightening. The increase in Treasury yields following September's policy meeting has led other Fed officials, including Vice Chair Philip Jefferson, Dallas Fed President Lorie Logan, and Paul Ryan, to echo Waller's sentiments.
Euro zone consumers see inflation slightly above ECB target for years Euro zone households see inflation staying slightly above the European Central Bank's 2% target for another three years, an ECB survey showed, as rate-setters struggle to convince the public that their plans for taming price pressures are on track. While consumer expectations for inflation are by nature imprecise, they can influence wage demands, spending and saving. They are also an important input in gauging whether the public has faith in the ECB achieving its inflation goal, amid a global debate about whether such targets should be raised. The ECB's Consumer Expectation Survey, carried out in August, showed the median respondent thought inflation would be 2.5% in three years' time, up from 2.4% in the previous survey around a month earlier.
Chinese vehicle sales rise 5% in September, new-energy cars sector sees 10.7% YoY growth China's vehicle sales experienced a notable uptick in September, with a 5% year-on-year (YoY) and month-on-month (MoM) increase to 2.02 million vehicles sold, as reported by the China Passenger Car Association (CPCA). This surge was primarily attributed to promotional activities and anticipation of holidays such as the Golden Week. A significant push for quarterly sales targets by automakers, especially noticeable in the new-energy cars sector, contributed to this growth. The sector witnessed a 10.7% YoY increase, demonstrating a robust trend toward cleaner energy vehicles in the Chinese market. In addition to domestic sales growth, China's auto industry also recorded a strong export growth of 50% YoY in September.
Dollar steady on underlying moderate PPI data, dovish Fed officials The 10-year government bond yield (interpolated) on the previous trading day was 3.30, -6.06 bps. The benchmark government bond yield (LB31DA) was 3.34,-6.00 bps. Meantime, the latest closed US 10-year bond yields was 4.58, -8.00 bps. USDTHB on the previous trading day closed around 36.45. Moving in a range of 36.325-36.36 this morning. USDTHB could be closed between 36.15-36.45 today. The dollar was steady after a core reading of U.S. producer prices showed underlying inflation moderated further in September, leading the market to reason the Federal Reserve is done hiking interest rates. The dollar index, which tracks the U.S. currency against six others, traded little changed after touching a two-week low of 105.550, while the euro rose to its highest since Sept. 25 at $1.0634. After stripping out food, energy and trade services, the producer price index (PPI) gained 0.2% last month, the same margin as in August. In the 12 months through September, core PPI increased 2.8%, or less than a 2.9% advance in August. The dollar's recent weakness has been driven by declining Treasury yields as bond prices rallied on the Fed's softer stance on future rate hikes. Bond yields move opposite to their price.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
