- USDTHB: moving in the range 33.96-34.01 this morning supportive level at 33.80 resistance level at 34.10
- SET Index: 1,365.49 (+0.07%), 4 Sep 2024
- S&P 500 Index: 5,520.07 (-0.16%), 4 Sep 2024
- Thai 10-year government bond yield (interpolated): 2.553 (-2.15 bps), 4 Sep 2024
- US 10-year treasury yield: 3.77 (-7.0 bps), 4 Sep 2024
- U.S. job openings hit a 3.5-year low, signaling a labor market slowdown
- US factory orders beat expectations in July
- Bank of Canada cuts rate to 4.25%, more easing expected
- Dollar softens as US job openings decline; Yen rises on safe-haven demand
U.S. job openings hit a 3.5-year low, signaling a labor market slowdown
In July, U.S. job openings fell to their lowest level in three and a half years, indicating a slowdown in the labor market. However, this decline alone is unlikely to justify a half-percentage-point interest rate cut by the Federal Reserve this month. Job openings, which reflect labor demand, decreased by 237,000 to 7.673 million, marking the lowest figure since January 2021. June's data was also revised downwards to show 7.910 million unfilled positions, compared to the previously reported 8.184 million. Economists had anticipated 8.100 million job openings. Additionally, the vacancy rate dropped to 4.6% from 4.9% (revised from 4.8%), while the quits rate rose to 2.1% from the previous 2.0% (revised from 2.1%). Fed Governor Waller has suggested that a vacancy rate falling below 4.5% might indicate that excess labor demand has been reduced and could lead to a rise in the unemployment rate.
US factory orders beat expectations in July
Factory orders surged 5.0% in July, surpassing expectations and reversing June’s decline. Shipments increased by 0.9%, and unfilled orders rose 0.2%. The unfilled orders-to-shipments ratio fell to 6.76. Inventories were up 0.1%, with the inventories-to-shipments ratio slightly down to 1.45. Durable goods orders jumped 9.8%, led by a 34.7% rise in transportation equipment, while non-durable goods orders rose 0.8%. Excluding transportation, factory orders increased by 0.4%.
Bank of Canada cuts rate to 4.25%, more easing expected
The Bank of Canada cut its rate to 4.25%, its third consecutive 25 basis point reduction. This move reflects easing inflationary pressures, although some areas like shelter costs still push inflation up. The BoC will base future decisions on new data and its effects on inflation. Governor Macklem suggested that further rate cuts are possible if inflation continues to decline as forecasted. He also mentioned that while there was strong support for a 25 basis point cut, other options, including a larger cut, were considered if the economy weakens.
Dollar softens as US job openings decline; Yen rises on safe-haven demand
The 10-year government bond yield (interpolated) on the previous trading day was 2.553, -2.15 bps. The benchmark government bond yield (LB346A) was 2.55, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 3.77, -7.0 bps. USDTHB on the previous trading day closed around 34.23 moving in a range of 33.96 – 34.01 this morning. USDTHB could be closed between 33.80 - 34.10 today. The Dollar weakened on Wednesday following disappointing US JOLTS data, which fell short of expectations and was below the forecast range, pushing the Dollar Index down to 101.24. Focus now shifts to Friday’s US payrolls report. The Euro traded near the upper end of today’s 1.1039-1.1094 range, gaining strength from the JOLTS data. Among G10 currencies, the Japanese yen performed best against the Dollar, benefiting from a continued decline in risk sentiment, with USD/JPY dropping to a low of 143.87.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics,
Investing, CEIC
