- USDTHB: moving in the range 35.15-35.25 this morning supportive level at 35.15 resistance level at 35.35
· SET Index: 1,389.6 (+0.43%), 6 Dec 2023
· S&P 500 Index: 4,549.3 (-0.39%), 6 Dec 2023
· Thai 10-year government bond yield (interpolated): 2.88 (-8.24 bps), 6 Dec 2023
· US 10-year treasury yield: 4.12 (-6.00 bps), 6 Dec 2023
- US private employers add 103,000 jobs in November
- Weak US third-quarter unit labor costs point to slowing inflation
- China's exports slump seen slowing as pockets of demand emerge
- Dollar at 2-week high, euro softer as market bets on rate cuts
US private employers add 103,000 jobs in November US private payrolls growth unexpectedly slowed in November, in a sign that the Federal Reserve's aggressive campaign of interest rate hikes could be impacting labor demand. Private employers in the US added 103,000 jobs last month, down from a revised mark of 106,000 in October, according to payroll processor ADP. Economists had forecast an increase of 130,000 jobs. Both the goods and services sectors saw weakness, with the manufacturing and leisure and hospitality industries posting declines. Fed policymakers will likely be keeping a close eye on the slowdown in private hiring, which serves as a warm-up act to the headline economic data this week. Tempering labor demand has been one of the main pillars of the US central bank's unprecedented decision to lift interest rates to more than two-decade highs. Officials are hoping that a softening jobs picture may defuse some upward pressure on inflation.
Weak US third-quarter unit labor costs point to slowing inflation US unit labor costs were much weaker than initially thought in the third quarter amid robust worker productivity, providing a boost to the Federal Reserve's fight against inflation. The inflation outlook was further brightened by other data showing a moderation in wage growth in November. The reports followed news on Tuesday that job openings dropped to a more than 2-1/2-year low in October. They strengthened financial market expectations that the US central bank was done tightening monetary policy and could pivot to cutting rates as early as the first quarter of 2024. Unit labor costs - the price of labor per single unit of output - fell at a 1.2% annualized rate in the third quarter, the Labor Department's Bureau of Labor Statistics (BLS) said, revised down from the previously reported 0.8% pace of decline.
China's exports slump seen slowing as pockets of demand emerge Declines in China's exports likely slowed in November, a Reuters poll showed, amid mixed signs factories in the world's second-largest economy may be finding their footing after a bruising slump in demand. Outbound shipments from China are expected to show a 1.1% drop in November from a year earlier, following a 6.4% fall in October and continuing the trend of narrowing declines for the fourth straight month, according to the median forecast of 28 economists polled. Mixed manufacturing data for November has kept alive calls for further policy support to shore up growth but also raised questions about whether predominantly negative sentiment-based surveys reflected improvements in conditions. A run of mostly upbeat data from October suggest support measures trickling out of Beijing since June bolstered a tentative economic recovery, even if a protracted property crisis and soft global demand continue to dog policymakers.
Dollar at 2-week high, euro softer as market bets on rate cuts The 10-year government bond yield (interpolated) on the previous trading day was 2.88, -8.24 bps. The benchmark government bond yield (LB31DA) was 2.96, -10.00 bps. Meantime, the latest closed US 10-year bond yields was 4.12, -6.00 bps. USDTHB on the previous trading day closed around 35.14 Moving in a range of 35.17-35.25 this morning. USDTHB could be closed between 35.15-35.35 today. The dollar fell on Friday, after two days of gains, as Federal Reserve Chair Jerome Powell struck a cautious tone on further interest rate moves, saying that the risk of under- or over-tightening is now more balanced. The market viewed his comments as dovish, with investors pricing in expectations that the Fed is likely done raising rates. Powell said it was clear that US monetary policy was slowing the economy as expected, with a benchmark overnight interest rate "well into restrictive territory." Powell noted, however, that the Fed is prepared to tighten policy further if deemed appropriate. The US dollar index - which tracks the currency against six major counterparts - was last down 0.2% at 103.23 after ending November on Thursday with its weakest monthly performance in a year. It is poised to end lower for a third straight week.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
