- USDTHB: moving in the range 33.88-33.95 this morning supportive level at 33.80 resistance level at 34.00
- SET Index: 1,354.9 (+1.03%), 23 Aug 2024
- S&P 500 Index: 5,634.6 (+1.14%), 23 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.569 (+0.69 bps), 23 Aug 2024
- US 10-year treasury yield: 3.81 (-5.0 bps), 23 Aug 2024
- Fed's Powell says it's time to cut rates
- BOJ’s Ueda hints at rate hikes if growth and inflation stay on track
- US new home sales rise to highest level in more than a year
- ECB survey indicates Euro zone consumers' inflation expectations remain stable
- Dollar falls after Powell approves September rate cuts
Fed's Powell says it's time to cut rates
At the Fed's Jackson Hole conference, Jerome Powell indicated that a rate cut is likely at the September meeting, stating, “the time has come for policy to adjust.” This aligns with the July minutes released on Wednesday, which suggested a September reduction. However, Powell did not specify the extent of the cut, noting instead that “the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” Regarding the labor market, Powell emphasized, "We do not seek or welcome further labor market cooling," highlighting the importance of the US jobs report on September 6, which is expected to influence the Fed's decision on the rate cut size.
BOJ’s Ueda hints at rate hikes if growth and inflation stay on track
On Friday, Bank of Japan Governor Kazuo Ueda reiterated that the BOJ would raise interest rates if inflation steadily hits the 2% target, though he acknowledged ongoing financial market instability. He linked recent market volatility to fears of a U.S. recession and noted that the BOJ's July rate hike had reversed the yen's decline. Ueda emphasized that the BOJ will carefully assess how these factors affect economic conditions before making further rate adjustments, suggesting a more gradual approach to future rate hikes.
US new home sales rise to highest level in more than a year
In July, U.S. sales of new single-family homes hit a year-high, rising 10.6% to an annual rate of 739,000 units due to lower mortgage rates. This marked the highest sales rate since May 2023, with June’s rate revised to 668,000 units. Economists had expected 625,000 units. The average 30-year fixed mortgage rate fell to 6.46%, the lowest since May 2023 and over half a percentage point below last year’s rate.
ECB survey indicates Euro zone consumers' inflation expectations remain stable
A European Central Bank survey shows that Eurozone consumers' inflation expectations for the next year have held steady at 2.8% for the third month in a row. This follows a decline from 3.3% in January. Expectations for inflation three years out rose slightly to 2.4% from 2.3% last month. Additionally, projections for income and spending growth have decreased, and consumer sentiment on economic growth has turned more negative.
Dollar falls after Powell approves September rate cuts
The 10-year government bond yield (interpolated) on the previous trading day was 2.569, +0.69 bps. The benchmark government bond yield (LB346A) was 2.57, +1.0 bps. Meantime, the latest closed US 10-year bond yields was 3.81, -5.0 bps. USDTHB on the previous trading day closed around 34.34 moving in a range of 34.46 – 34.53 this morning. USDTHB could be closed between 34.30 - 34.60 today. The Dollar Index fell significantly after Fed Chair Powell's comments at Jackson Hole. His dovish remarks caused the DXY to drop to 101.051 within five minutes. The index continued to weaken throughout the session, falling below its December 2023 low of 100.61. The Euro gained from Powell's statements, pushing EUR/USD up to 1.1200 and approaching the 2023 high of 1.1275. Similarly, the Japanese yen strengthened due to the Dollar's decline, with USD/JPY reaching a low of 144.14.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
