- USDTHB: moving in the range 36.75-36.79 this morning supportive level at 36.70 resistance level at 36.90
· SET Index: 1,318.6 (-1.07%), 10 June 2024
· S&P 500 Index: 5,360.8 (+0.15%), 10 June 2024
· Thai 10-year government bond yield (interpolated): 2.79 (+1.49 bps), 10 June 2024
· US 10-year treasury yield: 4.47 (+4.00 bps), 10 June 2024
- Long-dated Treasury holdings downsized as Fed faces tough inflation choices
- Euro zone investor morale rises more than expected in June
- China's central bank to return to gold buying as prices ease, analysts say
- Euro slumps on political uncertainty; dollar looks to Fed meeting
Long-dated Treasury holdings downsized as Fed faces tough inflation choices Bond investors, worried about persistently sticky inflation, have reduced their exposure to longer-dated US Treasuries ahead of the Federal Reserve's two-day monetary policy meeting this week in which it is likely to hold interest rates steady. The US central bank's policy-setting Federal Open Market Committee is widely expected on Wednesday to keep its benchmark overnight interest rate in the 5.25%-5.50% range for a seventh consecutive meeting. In his press conference after the end of the meeting, Fed Chair Jerome Powell is expected to continue emphasizing an easing bias, although he is likely to show little urgency to cut rates in the near term given persistent inflationary pressures and a still robust labor market. The US rate futures market has scaled back expectations for policy easing this year and is now pricing in one 25 basis-point rate cut in 2024, most likely in November or December, according to LSEG calculations.
Euro zone investor morale rises more than expected in June Investor morale in the euro zone rose for the eighth consecutive month in June, but economic recovery in the bloc is proceeding with difficulty. Sentix's index for the euro zone rose to 0.3 points for June from -3.6 in May. Analysts polled by Reuters had expected it to rise to -1.8 this month. Importantly, the index on expectations saw a rise, increasing from 7.8 in May to 10.0 in June, "providing some encouragement that the trend may continue in the coming weeks", Sentix said. "Germany's economy would have to send out a signal to generate more momentum. However, this signal has yet to materialize," it said. The barometer plunged into negative territory in the wake of Russia's invasion of Ukraine last February.
China's central bank to return to gold buying as prices ease, analysts say China, the biggest official sector buyer of gold, is expected to resume its bullion shopping spree once prices ease from the record highs hit in May, as the fundamental case for the metal remains, industry players said at a conference this week. After adding to its gold reserves for 18 consecutive months, official data from the People's Bank of China (PBOC) showed its holdings were unchanged in May, sending global spot prices down sharply on Friday. Benchmark spot gold traded around $2,300 per ounce on Monday after its biggest daily drop in 3-1/2 years in the wake of China's data on holdings. The market hit a record $2,449.89 per ounce on May 20, driven by interest rate cut expectations and firm central bank buying, fuelled by geopolitical tensions. The PBOC controls the amount of gold entering China via quotas to commercial banks.
Euro slumps on political uncertainty; dollar looks to Fed meeting The 10-year government bond yield (interpolated) on the previous trading day was 2.79, +1.49 bps. The benchmark government bond yield (LB31DA) was 2.78, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.47, +4.00 bps. USDTHB on the previous trading day closed around 36.89. Moving in a range of 36.75-36.79 this morning. USDTHB could be closed between 36.70-36.90 today. The single currency slumped Monday after the results from the European Parliament elections, which concluded on Sunday. This prompted French President Emmanuel Macron to call a snap legislative election, taking a gamble to try to reestablish his authority by calling after sharp gains by far-right political rival Marine Le Pen. The US dollar edged lower Monday, handing back some of Friday’s strong gains, as traders awaited the latest Federal Reserve meeting as well as the release of the latest inflation data. The greenback received a boost late last week, climbing to a near one-month high, after data showed stronger than expected growth in nonfarm payrolls in May, reducing the perceived chances of rate cuts by the Federal Reserve this year.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
