- USDTHB: moving in the range 36.66-36.70 this morning supportive level at 36.55 resistance level at 36.80
· SET Index: 1,297.4 (+0.06%), 18 June 2024
· S&P 500 Index: 5,487.0 (+1.02%), 18 June 2024
· Thai 10-year government bond yield (interpolated): 2.76 (-0.44 bps), 18 June 2024
· US 10-year treasury yield: 4.22 (-6.00 bps), 18 June 2024
- U.S. retail sales rise at slower than expected pace in May
- US manufacturing production surges in May
- BOJ debated weak yen's impact on inflation, April minutes show
- Dollar steadies; sterling dips ahead of inflation test
U.S. retail sales rise at slower than expected pace in May
U.S. retail sales increased at a slower-than-anticipated rate on a monthly
basis in May, pointing to lingering headwinds to momentum in consumer spending
activity despite inflationary pressures showing signs of cooling. Retail sales
rose by 0.1% last month, accelerating from a downwardly revised decline of 0.2%
in April. Economists had predicted that retail sales, which mostly reflect
goods and are not adjusted for inflation, would grow by 0.3%. Monthly sales at
gasoline stations slipped, dented in part by a fall in gas and motor vehicle
prices. Although inflation has proved to be sticky and interest rates remain
elevated, U.S. sales have been largely resilient thanks in part to a solid
labor market. But the uptick in sales has been dampened by more consumers
choosing to spend on essential items instead of pricier luxury goods.
Meanwhile, recent data has also indicated that workers who lose their jobs are
struggling to find new work.
US manufacturing production surges in May
Production at U.S. factories increased more than expected in May, recouping all
the declines in the prior two months, but the momentum is unlikely to be
sustained amid higher interest rates and softening demand for goods.
Manufacturing output jumped 0.9% last month following a downwardly revised 0.4%
drop in April. Economists polled by Reuters had forecast factory output rebounding
0.3% after a previously reported 0.3% fall in April. Production at factories
had declined in March and April. It gained 0.1% year-on-year in May.
BOJ debated weak yen's impact on inflation, April minutes show According to the minutes of BOJ April policy meeting, Bank of Japan policymakers debated the impact a weak yen could have on prices, with some flagging the chance of raising interest rates sooner than expected if inflation overshoots. A few members of the nine-person board said the central bank must respond with monetary policy if exchange rate moves, which are among the key factors affecting the economy and prices, alter its view on the outlook and risks, the minutes released on Wednesday showed. The weak-yen boost to inflation may have become bigger and more lasting than in the past, as companies are already keen to hike prices and wages, some members were quoted as saying.
Dollar steadies; sterling dips ahead of inflation test
The 10-year government bond yield (interpolated) on the previous trading day
was 2.76, -0.44 bps. The benchmark government bond yield (LB346A) was 2.77,
-1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.22, -6.00
bps. USDTHB on the previous trading day closed around 36.76 Moving in a range
of 36.80-36.84 this morning. USDTHB could be closed between 36.55-36.8
today. The dollar was nursing losses after soft U.S. retail sales data
reinforced bets of imminent Federal Reserve rate cuts, while sterling eased a
touch ahead of a reading on UK inflation due later in the day. That knocked the
greenback lower in the immediate aftermath, though its losses were limited
against a basket of currencies as the euro, which holds the largest weight in
the dollar index, continues to be weighed down by political jitters in France
and the wider bloc.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
