- USDTHB: moving in the range 34.02-34.09 this morning supportive level at 34.00 resistance level at 34.20
- SET Index: 1,364.8 (+0.73%), 26 Aug 2024
- S&P 500 Index: 5,616.8 (-0.32%), 26 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.547 (-2.27 bps), 26 Aug 2024
- US 10-year treasury yield: 3.82 (+1.0 bps), 26 Aug 2024
- US business spending on equipment cooled in July
- Fed's Daly reiterated that it's time to adjust policy
- German business sentiment drops in August, delaying recovery
- Dollar attempts to recoup from an eight-month low
US business spending on equipment cooled in July
In July, orders for business equipment at US factories fell, and the previous month's gain was revised downward, indicating that companies are being more cautious about investing. Core capital goods orders, which exclude aircraft and military equipment, decreased by 0.1% last month following a revised 0.5% increase in June. Overall durable goods orders, which are meant to last at least three years, rose by 9.9%, but orders excluding transportation equipment dropped by 0.2%. While many businesses remain committed to long-term investments, uncertainty over the presidential election and future demand has led some to scale back expansion plans. This suggests that factory production might face challenges in maintaining momentum in the near future.
Fed's Daly reiterated that it's time to adjust policy
Daly mostly echoed Fed Chair Powell's message from Jackson Hole, emphasizing that it's time to adjust policy. However, she mentioned it's too early to determine the scale of potential rate cuts or to discuss specific rate strategies for the year. She acknowledged that while it’s hard to foresee anything that might prevent a September rate cut, the Fed would need to take a more aggressive stance if economic weakness exceeds expectations. Daly also refrained from stating that the Fed is moving towards a neutral stance. She observed no immediate signs of a sharp decline in the labor market or indications that companies are preparing for layoffs. She anticipates a gradual reduction in inflation and a steady pace of labor market growth.
German business sentiment drops in August, delaying recovery
German business confidence dropped for the third month in a row in August, dampening hopes for a recovery in Europe’s largest economy. The Ifo Institute reported that its business climate index decreased to 86.6 in August from 87.0 in July, though it was slightly above the analysts' forecast of 86.0. The index showed a notable decline in industrial sentiment, with service providers also experiencing a downturn. The current conditions index fell to 86.5 from 87.1, while expectations dropped only slightly, to 86.8 from a revised 87.0. This survey aligns with recent purchasing managers' index (PMI) data, which indicated a continued contraction in business activity for August, exceeding expectations.
Dollar attempts to recoup from an eight-month low
The 10-year government bond yield (interpolated) on the previous trading day was 2.547, -2.27 bps. The benchmark government bond yield (LB346A) was 2.54, -3.0 bps. Meantime, the latest closed US 10-year bond yields was 3.82, +1.0 bps. USDTHB on the previous trading day closed around 33.98 moving in a range of 34.02 – 34.09 this morning. USDTHB could be closed between 34.00 - 34.20 today. The Dollar tried to recover some losses from last week’s sharp decline, which was triggered by a dovish Powell. Despite limited news on Monday, the Dollar made modest gains, reaching a high of 100.920. The euro fluctuated between 1.1151 and 1.1201 but showed minimal movement despite better-than-expected German Ifo data. The Japanese yen peaked at 144.65.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
