- USDTHB: moving in the range 36.57-36.61 this morning supportive level at 36.40 resistance level at 36.70
· SET Index: 1,366.4 (+0.14%), 27 May 2024
· S&P 500 Index: 5,304.7 (+0.70%), 24 May 2024
· Thai 10-year government bond yield (interpolated): 2.80 (-2.22 bps), 27 May 2024
· US 10-year treasury yield: 4.46 (-1.00 bps), 24 May 2024
- German business sentiment stagnates in May
- Japan upgrades factory output view in monthly report
- Thailand plans stimulus as 2024 growth seen low at 2.5%, Finance Minister says
- Dollar firm ahead of global inflation data
German business sentiment stagnates in May German business morale stagnated in May, a survey showed on Monday, falling short of a forecast improvement and suggesting the recovery of Germany's economy this year will be slow progress. The Ifo institute said its business climate index remained constant in May at 89.3, compared with a reading of 90.4 forecast by analysts in a Reuters poll. Companies were less satisfied with the current business situation, the Ifo survey showed. Expectations, on the other hand, brightened. Industry, trade and construction are recovering, while service providers are suffering a setback, the Ifo institute said. The German economy grew by 0.2% in the first three months of 2024, the statistics office reported on Friday, confirming preliminary data. Gross domestic product shrank in the final quarter of 2023.
Japan upgrades factory output view in monthly report Japan's government upgraded its assessment of factory output for the first time in a year, saying in its monthly economic report that it showed signs of picking up and signaling production may have bottomed out. The government also upgraded its assessment of imports and public works while leaving its overall economic assessment unchanged for a third straight month. There was no revision to other components such as private consumption and capital expenditure. It said there were signs of a pick-up in factory output, upgrading its assessment of this metric for the first time since May last year, according to a Cabinet Office official who compiled the monthly report. The change in the assessment on industrial output may suggest that these temporary headwinds to factory activity likely have eased.
Thailand plans stimulus as 2024 growth seen low at 2.5%, Finance Minister says Thailand plans stimulus measures in the short term to jumpstart its economy, which is expected to grow just 2.5% this year when it should be expanding at least 3.5% annually. Southeast Asia's second-largest economy has lagged regional peers, with growth at 1.5% in the first quarter, slowing from 1.7% growth the quarter before. Last year's growth was 1.9%. The economy has good potential to expand at least 3.5% per year. The measures will include providing credit access for smaller businesses, offering tax measures and accelerating government spending, officials said at the briefing. Prime Minister Srettha Thavisin has urged the central bank to cut interest rates to help economic activity, but the central bank has refused to bow to pressure, keeping rates at a more than decade-high of 2.50%. The next interest rate review is on June 12.
Dollar firm ahead of global inflation data The 10-year government bond yield (interpolated) on the previous trading day was 2.80, -2.22 bps. The benchmark government bond yield (LB31DA) was 2.82, -1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.46, -1.00 bps. USDTHB on the previous trading day closed around 36.61. Moving in a range of 36.57-36.61 this morning. USDTHB could be closed between 36.40-36.70 today. The dollar held steady but was set for its first monthly loss this year, as investors were focused on US, European and Japanese inflation data to guide the global interest rate outlook. Foreign exchange trade has been dominated by the hunt for "carry" in recent months, punishing low-yield currencies and supporting the dollar, while US data has blown hot and cold and dented policymakers' confidence on the rates outlook. Several major pairs have hugged tight ranges. The euro, which gained 0.9% on the dollar last week, was in the middle of a range it has held for more than a year at $1.0845. The euro offered little reaction to a survey on Monday that showed German business confidence worsened in May, against forecasts for an improvement. Trading on Monday was thinned out by holidays in Britain and the United States.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
