- USDTHB: moving in the range 32.41-32.47 this morning supportive level at 32.30 resistance level at 32.60
- SET Index: 1,455.0 (-0.45%), 26 Sep 2024
- S&P 500 Index: 5,745.4 (+0.4%), 26 Sep 2024
- Thai 10-year government bond yield (interpolated): 2.479 (+0.58 bps), 26 Sep 2024
- US 10-year treasury yield: 3.79 (+0.00 bps), 26 Sep 2024
- U.S. GDP remains steady at 3.0% for the second quarter
- U.S. initial jobless claims fell, exceeding expectations and signaling a strong labor market
- Core inflation in Tokyo aligns with the Bank of Japan's target
- China to give one-off handouts to needy
- The dollar declines as the impact of positive data wanes
U.S. GDP remains steady at 3.0% for the second quarter
The final GDP estimate for Q2 remained at 3.0%, meeting expectations and increasing from 1.6% in Q1. The BEA reported upward adjustments in private inventory investment and federal spending, offset by declines in nonresidential fixed investment, exports, consumer spending, and residential fixed investment. Imports also rose, negatively impacting GDP. While the report reflects conditions from April to June and may seem outdated, it highlights progress on inflation and a strong economy. Analysts believe these revisions bolster confidence in continued economic growth, suggesting stable labor market conditions and a gradual approach to interest rate cuts by the Fed in upcoming quarters.
U.S. initial jobless claims fell, exceeding expectations and signaling a strong labor market
Last week, new unemployment claims dropped to a four-month low, suggesting a healthy labor market. Initial claims for the week ending September 21 fell to 218,000 from a revised 222,000, despite forecasts of an increase. The four-week average also decreased to 224,750. For the week ending September 14, continued claims rose to 1.834 million, slightly below the expected 1.838 million.
Core inflation in Tokyo aligns with the Bank of Japan's target
Core inflation in Tokyo hit the central bank's 2% target in September, indicating progress toward conditions for interest rate hikes. The Tokyo core consumer price index (CPI) rose 2.0% year-over-year, slowing from 2.4% in August due to resumed government utility subsidies. A separate index, excluding fresh food and fuel, also rose 1.6% year-over-year, unchanged from August. Despite potential political and global uncertainties leading the Bank of Japan to maintain its position in October, strong inflation data keeps market expectations for a rate hike in December or early next year.
China to give one-off handouts to needy
China will distribute a one-time allowance to disadvantaged individuals ahead of a national holiday next week, as stated by the government. While the exact amount was not specified, the funds will aid extremely poor individuals, orphans, and those in need. The allowances are set to be paid before October 1, when China begins a week-long holiday to mark the 75th anniversary of the People's Republic of China.
The dollar declines as the impact of positive data wanes
The 10-year government bond yield (interpolated) on the previous trading day was 2.479, +0.58 bps. The benchmark government bond yield (LB346A) was 2.47, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 3.79, +0.00 bps. USDTHB on the previous trading day closed around 32.68 moving in a range of 32.41 – 32.47 this morning. USDTHB could be closed between 32.30 – 32.60 today. The dollar retraced much of Wednesday’s gains, pressured after nearing the 101.00 mark, and did not benefit from positive economic data. The euro strengthened after initial weakness due to uncertainty around the ECB's October rate decision. The Japanese yen weakened during a volatile session ahead of Tokyo CPI data and the LDP leadership race.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
