- USDTHB: moving in the range 36.06-36.13 this morning supportive level at 35.95 resistance level at 36.20
· SET Index: 1,382.7 (+0.36%), 17 May 2024
· S&P 500 Index: 5,297.1 (-0.21%), 17 May 2024
· Thai 10-year government bond yield (interpolated): 2.73 (-0.03 bps), 17 May 2024
· US 10-year treasury yield: 4.42 (+4.00 bps), 17 May 2024
- Japan inflation likely slowed again, may ease cost pressure
- China new home prices fall at fastest pace in over 9 years
- China keeps loan prime rate unchanged as stimulus measures continue
- Dollar steadies, but on track for sharp weekly loss
Japan inflation likely slowed again, may ease cost pressure Japan's core consumer inflation probably slowed for a second straight month in April from a year earlier, a Reuters poll of 18 economists showed, likely easing cost-push pressure. The core consumer prices index (CPI) is expected to decelerate to 2.2% from 2.6% in March, the lowest level in three months, but still at or above the central bank's 2% target for more than two years. The data will be key to further decisions on rate hikes by the Bank of Japan (BOJ), which wants to push interest rates higher albeit gradually, saying it should keep accommodative conditions for the time being due to a fragile economy. The BOJ raised interest rates in March for the first time since 2007 in a landmark shift away from negative rates. Now, the central bank is coming under pressure from some lawmakers to raise rates further to cushion a blow from the yen's rapid weakening to levels unseen since 1990.
China new home prices fall at fastest pace in over 9 years China's new home prices fell at the fastest monthly pace in over nine years in April, keeping pressure on authorities as intensified efforts to prop up the ailing property sector show few signs of paying off. Prices were down 0.6% month-on-month in April, worse than a 0.3% fall in March, the fastest pace since November 2014, according to Reuters calculations based on National Bureau of Statistics (NBS) data released. Prices have fallen for a tenth consecutive month, the data showed. In annual terms, new home prices fell at the steepest pace since July 2015, down 3.1% last month versus a 2.2% drop in March. Chinese authorities have stepped up efforts since 2022 to revive the ailing property sector, which is a major driver of the world's second-biggest economy, but a meaningful recovery has proven elusive.
China keeps loan prime rate unchanged as stimulus measures continue The People’s Bank of China kept its benchmark loan prime rate (LPR) unchanged on Monday as widely expected, even as Beijing continued to roll out other stimulus measures to support the economy. The PBOC left its one-year LPR at 3.45%, while the five-year rate, which is used to determine mortgage rates, was left at 3.95%. The move was widely expected after the PBOC left another medium-term facility rate unchanged last week. Both rates were kept at record lows, as Beijing sought to shore up economic growth by keeping local monetary conditions as loose as possible. The PBOC cut the 5-year LPR in February to help support the property market, with more measures also coming over the past two weeks. The LPR is determined by the PBOC based on considerations from 18 designated commercial banks and is used as a benchmark for lending rates in the country.
Dollar steadies, but on track for sharp weekly loss The 10-year government bond yield (interpolated) on the previous trading day was 2.73, -0.03 bps. The benchmark government bond yield (LB31DA) was 2.73, +0.50 bps. Meantime, the latest closed US 10-year bond yields was 4.42, +4.00 bps. USDTHB on the previous trading day closed around 36.27. Moving in a range of 36.06-36.13 this morning. USDTHB could be closed between 35.95-36.20 today. The US dollar edged higher in European trade but was on track for a hefty weekly fall after cooling inflation and weak retail sales brought Federal Reserve rate cuts back into focus. The Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher at 104.580, marginally above a five-week low just below 104 seen earlier this week. The dollar has recovered to a degree as several Fed officials, specifically members of the bank’s rate-setting committee, said that they needed much more confidence that inflation was coming down, beyond some easing inflation in April. However, the dollar is still on course for a weekly loss of around 0.7% after the milder than expected US inflation data.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
