- USDTHB: moving in the range 36.38-36.41 this morning supportive level at 36.25 resistance level at 36.50
· SET Index: 1,328.4 (-0.74%), 6 June 2024
· S&P 500 Index: 5,353.0 (+1.16%), 5 June 2024
· Thai 10-year government bond yield (interpolated): 2.79 (-1.12 bps), 6 June 2024
· US 10-year treasury yield: 4.28 (-1.00 bps), 6 June 2024
- US trade deficit widens in April
- US productivity growth slowed in early 2024
- ECB cuts rates, keeps next move under wraps
- Dollar flat ahead of US jobs report, euro digests ECB cut
US trade deficit widens in April The US trade deficit widened in April as a jump in imports outpaced a slight increase in exports. The trade deficit increased 8.7% to $74.6 billion, the Commerce Department's Bureau of Economic Analysis said on Thursday. Data for March was revised to show the trade gap narrowing slightly to $68.6 billion instead of the $69.4 billion as previously reported. Economists polled by Reuters had forecast the deficit would rise to $76.1 billion in April. The economy grew at a 1.3% annualized rate last quarter after expanding at a 3.4% pace in the October-December period. Imports rose 2.4% to $338.2 billion in April. Goods imports rose $8.1 billion to $271.9 billion. There were increases in imports of motor vehicles and parts and capital goods such as computer accessories and telecommunications equipment, as well as industrial supplies and materials, which include crude oil.
US productivity growth slowed in early 2024 US worker productivity grew slightly less than previously estimated in the first quarter but exceeded market expectations, and unit labor costs rose by less than first thought, data from the Labor Department showed on Thursday, although the revision seems unlikely to allay Federal Reserve officials' hesitance to turn to rate cuts in the near term. Nonfarm productivity, which measures hourly output per worker, increased at a 0.2% annualized rate in the first quarter, revised down from an initial estimate of 0.3% one month ago. Economists polled by Reuters had estimated a revision down to 0.1%. Unit labor costs, meanwhile, rose at a 4.0% annualized rate, down from the Bureau of Labor Statistics' first estimate of 4.7%. Economists had projected labor costs to be revised up to 4.9%.
ECB cuts rates, keeps next move under wraps The European Central Bank cut interest rates for the first time in five years on Thursday but kept investors in the dark about its next move given increasing uncertainty over inflation after a sharp slowdown in the past year. The ECB lowered its record-high deposit rate by 25 basis points to 3.75%, joining the central banks of Canada, Sweden and Switzerland in starting to unwind some of the steepest rate hikes used to tame a post-pandemic inflation surge. Thursday's well-flagged move is seen as the start of an easing cycle, but lingering price and wage pressures are clouding the outlook and may force the euro zone's central bank to wait months before cutting again. Economists see another two rate cuts from the ECB this year, most likely in September and December, while markets are pricing in between one and two more moves.
Dollar flat ahead of US jobs report, euro digests ECB cut The 10-year government bond yield (interpolated) on the previous trading day was 2.79, -1.12 bps. The benchmark government bond yield (LB31DA) was 2.80, -2.00 bps. Meantime, the latest closed US 10-year bond yields was 4.28, -1.00 bps. USDTHB on the previous trading day closed around 36.49. Moving in a range of 36.38-36.41 this morning. USDTHB could be closed between 36.25-36.50 today. The dollar traded sideways ahead of Friday's US employment data that could help the Federal Reserve set a timetable for easing, while the euro held steady after a widely anticipated European Central Bank rate cut. The euro rose 0.17% to $1.0887, approaching the 2-1/2 month peak of $1.0916 hit earlier in the week. Against the Japanese currency it was off 0.09% at 169.57 yen. The dollar index, which measures the greenback against a basket of currencies including the yen and euro, was 0.09% lower at 104.16, barely reacting to news that applications for unemployment benefits rose more than expected last week to 229,000. Weekly jobless claims were also slightly above last week's upwardly revised 221,000.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
