- USDTHB: moving in the range 34.88-34.945 this morning supportive level at 34.85 resistance level at 35.10
· SET Index: 1,394.9 (+0.11%), 19 Dec 2023
· S&P 500 Index: 4,768.4 (+0.58%), 19 Dec 2023
· Thai 10-year government bond yield (interpolated): 2.82 (+0.30 bps), 19 Dec 2023
· US 10-year treasury yield: 3.93 (-2.00 bps), 19 Dec 2023
- US single-family housing starts scale more than 1-1/2-year high
- Japan's exports fall for first time in three months as China shipments sag
- China leaves lending benchmark rates unchanged as expected
- Dollar rises vs yen as BOJ sticks with ultra-loose policy
US single-family housing starts scale more than 1-1/2-year high US single-family homebuilding surged to more than a 1-1/2-year high in November and could gain further momentum, with declining mortgage rates and incentives from builders likely to draw potential buyers back into the housing market. The report from the Commerce Department on Tuesday also showed permits for future construction of single-family housing last month increased to the highest level since May 2022. A jump in mortgage rates had dampened new construction activity in recent months. The new housing market remains underpinned by an acute shortage of previously owned homes available for sale. Economists raised their fourth-quarter gross domestic product growth estimates and predicted that the housing market would help the economy avoid a recession next year.
Japan's exports fall for first time in three months as China shipments sag Japan's exports in November fell for the first time in three months dragged down by China-bound chip shipments, underscoring worries that slowing overseas economies will complicate policymakers' efforts to wind back on stimulus. November exports fell 0.2% from the same month a year earlier, Ministry of Finance data showed on Wednesday. It was the first year-on-year decline in three months. That compared with a 1.5% rise expected by economists in a Reuters poll. It followed a 1.6% rise in October. Weak exports are a source of concern for Japanese policymakers who are hopeful that external demand can help counter weak domestic consumption. The central bank maintained its ultra-loose policy settings, opting to await more evidence on whether wages and prices would rise enough to justify a shift away from massive monetary stimulus.
China leaves lending benchmark rates unchanged as expected China stood pat on benchmark lending rates at the monthly fixing, matching market expectations, after the central bank kept its medium-term policy rate steady earlier last week. But market watchers continued to expect Beijing to deliver further monetary easing into the new year to support a sputtering economic recovery as deflationary pressure push up real borrowing costs. The one-year loan prime rate (LPR) was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Most new and outstanding loans in the world's second-largest economy are based on the one-year LPR, which stands at 3.45%. It was lowered twice by a total of 20 basis points in 2023. The five-year rate influences the pricing of mortgages and is 4.20% now. It was lowered by 10 basis points so far this year.
Dollar rises vs yen as BOJ sticks with ultra-loose policy The 10-year government bond yield (interpolated) on the previous trading day was 2.82, +0.30 bps. The benchmark government bond yield (LB31DA) was 2.82, -8.00 bps. Meantime, the latest closed US 10-year bond yields was 3.93, -2.00 bps. USDTHB on the previous trading day closed around 34.99 Moving in a range of 34.88-34.945 this morning. USDTHB could be closed between 34.85-35.10 today. The US dollar rose against the yen after the Bank of Japan gave no sign that its ultra-loose monetary policy was set to end, but expectations for interest rate cuts next year continued to weigh against the greenback more broadly. The Bank of Japan maintained its ultra-loose policy settings as expected, as it opted to await more evidence on whether wages and prices would rise enough to justify a shift away from massive monetary stimulus. The central bank also made no change to its dovish policy guidance, dashing hopes among some traders it would tweak the language to signal a near-term end to negative interest rates. Meanwhile the dollar continued to struggle against most majors as traders sold the US currency on expectations that the Federal Reserve is about to start cutting rates as early as March.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
