- USDTHB: moving in the range 36.62-36.66 this morning supportive level at 36.40 resistance level at 36.70
· SET Index: 1,364.5 (-0.25%), 24 May 2024
· S&P 500 Index: 5,267.8 (-0.74%), 24 May 2024
· Thai 10-year government bond yield (interpolated): 2.82 (-0.10 bps), 24 May 2024
· US 10-year treasury yield: 4.46 (-1.00 bps), 24 May 2024
- US core capital goods orders rise, inflation expectations improve
- German economy grew 0.2% in Q1, stats office confirms
- Ueda says BOJ will proceed cautiously with inflation targeting frameworks
- Dollar down on profit taking but upbeat outlook remains
US core capital goods orders rise, inflation expectations improve New orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of those goods also increased, suggesting a moderate improvement in business spending on equipment early in the second quarter. Nonetheless, business investment on equipment continues to be hamstrung by higher borrowing costs. That, together with a strong dollar and weak global demand, is keeping manufacturing, which accounts for 10.4% of the economy, on the ropes. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 0.3% last month after an upwardly revised 0.1% dip in March, the Commerce Department's Census Bureau said on Friday. Economists polled by Reuters had forecast these so-called capital goods orders would edge up 0.1% after declining by a previously reported 0.2% in March.
German economy grew 0.2% in Q1, stats office confirms The German economy grew by 0.2% in the first three months of 2024, the statistics office reported on Friday, confirming preliminary data. Despite declining inflation, household consumption did not recover in the first quarter, falling 0.4% on the previous quarter. Government expenditure was also 0.4% lower than in the previous quarter, the data showed. Following a weak second half of 2023, investment in construction rose significantly by 2.7% on the quarter, while investment in machinery and equipment fell by 0.2%. Positive contributions also came from foreign trade. In the first quarter, exports of goods and services were up 1.1% compared with the previous quarter.
Ueda says BOJ will proceed cautiously with inflation targeting frameworks The Bank of Japan (BOJ) will proceed cautiously with inflation-targeting frameworks, Governor Kazuo Ueda said on Monday, noting that some challenges are "uniquely difficult" for Japan after years of ultra-easy monetary policy. In an opening speech to a BOJ-hosted seminar in Tokyo on central banking, Ueda said Japan has "made progress in moving away from zero and lifting inflation expectations.“ To achieve 2% inflation in a sustainable and stable manner, the BOJ "will proceed cautiously, as do other central banks with inflation-targeting frameworks," he said. "While many of the challenges we face are similar to those encountered by our counterparts, some are uniquely difficult for us," the BOJ chief added. Ueda noted that estimating the neutral interest rate accurately is particularly challenging in Japan, given the prolonged period of near-zero short-term interest rates over the past three decades.
Dollar down on profit taking but upbeat outlook remains The 10-year government bond yield (interpolated) on the previous trading day was 2.82, -0.10 bps. The benchmark government bond yield (LB31DA) was 2.82, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.46, -1.00 bps. USDTHB on the previous trading day closed around 36.72. Moving in a range of 36.62-36.66 this morning. USDTHB could be closed between 36.40-36.70 today. The dollar slipped against most major currencies on Friday as traders booked profits after recent gains, but the U.S. currency remained well-placed for further advances, supported by strong U.S. economic data that has prompted markets to dial back expectations for interest rate cuts. Data on Friday showed new orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of these goods also increased, suggesting a pickup in business spending on equipment early in the second quarter. This follows Thursday's data that showed U.S. business activity in May accelerated to the highest level in just over two years and manufacturers reported surging input prices. Minutes from the Federal Reserve's last meeting published this week showed a lively debate among policymakers as to whether current rates were sufficiently restrictive to cool inflation.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
