- USDTHB: moving in the range 33.93-33.99 this morning supportive level at 33.80 resistance level at 34.10
- SET Index: 1,357.4 (-0.61%), 29 Aug 2024
- S&P 500 Index: 5,592.0 (-0.00%), 29 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.551 (+0.11 bps), 29 Aug 2024
- US 10-year treasury yield: 3.87 (+3.0 bps), 29 Aug 2024
- US economy grows at a revised 3% rate, driven by strong consumer spending
- Jobless claims remain largely unchanged
- Tokyo CPI and core inflation rose more than expected in August
- US dollar climbs for the second day as GDP data supports a smaller Fed cut
US economy grows at a revised 3% rate, driven by strong consumer spending
The US economy expanded at a somewhat faster rate in the second quarter than previously estimated, thanks to an upward adjustment in consumer spending that outweighed declines in other areas. GDP grew at an annualized rate of 3% from April to June, up from the earlier estimate of 2.8%. Personal spending, the main driver of economic growth, increased by 2.9%, revised up from the previous estimate of 2.3%.
Jobless claims remain largely unchanged
The number of new unemployment benefit applications in the US was relatively stable last week. Initial claims for the week ending August 24 were 231,000, slightly below the forecast of 232,000. The previous week's total was revised up to 233,000 from 232,000. Continuing claims, or the number of people receiving benefits beyond the first week, increased by 13,000 to 1.868 million. The labor market shows no significant weakness, suggesting a likely 25bps rate cut by the Fed in September. However, the US jobs report on September 6 will be crucial in determining the exact size of the Federal Reserve's rate adjustment.
Tokyo CPI and core inflation rose more than expected in August
In August, consumer price index inflation in Tokyo exceeded expectations as rising wages boosted private spending, possibly signaling future interest rate hikes by the Bank of Japan. Tokyo Core CPI, which excludes volatile fresh food prices, increased by 2.4% year-on-year, surpassing forecasts of 2.2% and the previous month's rate. A narrower core CPI measure, excluding both fresh food and energy, rose 1.6% year-on-year from 1.5% the previous month, but still fell short of the BOJ’s 2% target. Headline CPI inflation jumped to 2.6% year-on-year from 2.2% the previous month, driven by higher food prices.
US dollar climbs for the second day as GDP data supports a smaller Fed cut
The 10-year government bond yield (interpolated) on the previous trading day was 2.551, +0.11 bps. The benchmark government bond yield (LB346A) was 2.54, -0.5 bps. Meantime, the latest closed US 10-year bond yields was 3.87, +3.0 bps. USDTHB on the previous trading day closed around 34.00 moving in a range of 33.93 – 33.99 this morning. USDTHB could be closed between 33.80 - 34.10 today. The Dollar Index rose above 101, initially boosted by Euro weakness and later supported by a higher-than-expected Q2 GDP revision and stable jobless claims. It peaked at 101.58 but has since slightly decreased. The Euro weakened against the dollar following a larger-than-expected drop in German state CPI. Safe haven currencies also fell due to a stronger dollar and rising US yields. USD/JPY hit 145.55 but couldn’t maintain that level.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
