- USDTHB: moving in the range 34.84-34.90 this morning supportive level at 34.80 resistance level at 35.00
· SET Index: 1,418.5 (-0.67%), 8 Jan 2024
· S&P 500 Index: 4,763.5 (+1.40%), 8 Jan 2024
· Thai 10-year government bond yield (interpolated): 2.78 (-0.56 bps), 8 Jan 2024
· US 10-year treasury yield: 4.01 (-4.00 bps), 8 Jan 2024
- U.S. consumers' inflation outlook hits two-year low, Fed rate cuts anticipated
- Euro zone investor morale gains in January
- Tokyo CPI inflation eases as expected in Dec, BOJ annual target in sight
- Dollar falls as traders focus on data for Fed policy clues
U.S. consumers' inflation outlook hits two-year low, Fed rate cuts anticipated The New York Federal Reserve has released new data indicating a significant shift in U.S. consumers' inflation expectations, which have fallen to their lowest point in two years. Today, the Fed reported that the one-year inflation forecast has dropped to 3%, a level not seen since January 2021. This marks a considerable decline from the peak observed in mid-2022. The Fed's report also showed a decrease in the longer-term outlook, with expectations for three-year and five-year inflation also trending downwards. Consumers are predicting slower price increases in key areas such as food and rent. However, they do anticipate education costs will continue to rise. These changing expectations come as the Federal Reserve has been actively raising interest rates to combat persistent inflation.
Euro zone investor morale gains in January Investor morale in the euro zone improved for the third consecutive month in January to its highest level since May, but a turnaround for the 20-country currency bloc is not a done deal. Sentix's index for the euro zone rose to -15.8 points in January from -16.8 in December, below a reading of -15.5 estimated in a Reuters poll of analysts. Sentix pointed to Germany - the region's largest economy - as a pocket of particular weakness, with a decline in sentiment. For the euro zone, the expectations index rose to -8.8 points from -9.8 in December, a fourth consecutive month of rises and the highest value since February. The index on the current situation in the euro zone also rose, increasing to -22.5 in January from -23.5 the previous month, the third monthly increase in a row.
Tokyo CPI inflation eases as expected in Dec, BOJ annual target in sight Inflation in Japan’s capital fell as expected in December and was now within spitting distance of the Bank of Japan’s annual target, likely heralding a similar trend from nationwide inflation. Tokyo core consumer price index (CPI) inflation- which excludes volatile fresh food prices, rose at an annualized 2.1% in December, data from the Statistics Bureau showed on Tuesday. The reading was in line with expectations and fell further from the 2.3% seen in November. Month-on-month core CPI inflation rose 0.1% from November. A core reading that excludes both fresh food and fuel prices rose 3.5% in December, down from 3.6% in the prior month. The core reading is closely watched by the BOJ as a measure of underlying inflation and has fallen steadily from 40-year highs hit earlier in 2023.
Dollar falls as traders focus on data for Fed policy clues The 10-year government bond yield (interpolated) on the previous trading day was 2.78, -0.56 bps. The benchmark government bond yield (LB31DA) was 2.78, -0.50 bps. Meantime, the latest closed US 10-year bond yields was 4.01, -4.00 bps. USDTHB on the previous trading day closed around 34.91 Moving in a range of 34.84-34.90 this morning. USDTHB could be closed between 34.80-35.00 today. The dollar dropped against the euro and yen on Monday as investors continued to digest last week's mixed U.S. economic data and looked ahead to a key inflation reading for fresh clues on when the Federal Reserve is likely to begin cutting interest rates. The greenback initially bounced on Friday after data showed that U.S. employers hired 216,000 workers in December, above economists' expectations in a Reuters poll, while average hourly earnings rose 0.4%, which was also above expectations. The U.S. currency then dropped, however, as investors focused on some underlying factors in the jobs report that showed less strength. It declined further after a separate report showed the U.S. services sector slowed considerably in December, with a measure of employment dropping to the lowest level in nearly 3-1/2 years.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
