- USDTHB: moving in the range 36.655-36.70 this morning supportive level at 36.55 resistance level at 36.80
· SET Index: 1,303.8 (+0.49%), 19 June 2024
· S&P 500 Index: 5,487.0 (+0.25%), 18 June 2024
· Thai 10-year government bond yield (interpolated): 2.74 (-2.11 bps), 19 June 2024
· US 10-year treasury yield: 4.22 (-6.00 bps), 18 June 2024
- UK inflation drops to 2% target for first time since 2021
- Japan’s Exports Grow Most Since 2022 on Boost from Weak Yen
- Most Japan firms see no need to follow the U.S. with tariffs on China
- Dollar struggles for direction, euro close to 1 month low
UK inflation drops to 2% target for first time since 2021
British
inflation returned to its 2% target for the first time in nearly three years in
May, but strong underlying price pressures all but rule out a pre-election
interest rate cut. While Prime Minister Rishi Sunak welcomed the fall in
headline inflation in May, it has likely come too late to turn around his
fortunes in British elections on July 4 or to prompt a Bank of England rate cut
on Thursday. Office for National Statistics data showed services price
inflation, which the BoE thinks gives a better picture of medium-term inflation
risks, was 5.7%. That was down from 5.9% in April, but higher than the 5.5%
economists had forecast or the 5.3% predicted by the BoE last month.
Japan’s Exports Grow Most Since 2022 on Boost from Weak Yen
Japan’s exports grew at the fastest clip since late 2022 as the weak yen
boosted their value, a positive development for the nation’s manufacturing
sector. Exports increased 13.5% from a year ago in May, marking a sixth month
of gains. The gain outpaced economists’ consensus estimates of a 12.7%
increase, and it was the largest since November of 2022. Imports advanced 9.5%,
in line with estimates. The trade deficit came to ¥1.22 trillion ($7.7
billion), widening from ¥466 billion in April.
Most Japan firms see no need to follow the U.S. with tariffs on China
According to the Reuters, Most Japanese companies see no need for their
government to follow the U.S. in raising tariffs on Chinese imports, saying
excessive production capacity in China's industrial sector does not affect
them. Around 61% of respondents to the survey, conducted June 5-14, said there
was no need for Japan to embark on similar measures. The rest said Japan
should. Around 53% said China's excessive production capacity had little to no
impact on their business. In contrast, the European Union has increased duties
on EV imports from China.
Dollar struggles for direction, euro close to 1-1/2-month low
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 36.70 moving in a range
of 36.655-36.70 this morning. USDTHB could be closed between 36.55-36.80 today.
The dollar struggled for direction on Wednesday while the euro remained close
to its recent lows on concerns that a new government in France could weaken
fiscal discipline, increasing the debt risk premium across the euro area.
Meanwhile sterling rose after data showed British service inflation was
stronger than expected. The dollar index was flat around 105.20 as U.S. markets
are closed on Wednesday.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
