- USDTHB: moving in the range 33.95-33.97 this morning supportive level at 33.80 resistance level at 34.10
- SET Index: 1,344.2 (-1.30%), 23 Jan 2025
- S&P 500 Index: 6,118.7 (+0.53%), 23 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.313 (-3.47 bps), 23 Jan 2025
- US 10-year treasury yield: 4.65 (+5.0 bps), 23 Jan 2025
- Trump at Davos: Pushes NATO 5%, lower oil prices, and EU tariff warnings
- US jobless claims edge up, while ongoing applications soar
- Japan's inflation hits 3%, boosting rate-hike prospects
- Thai exports beat forecasts in December, with January growth expected despite trade uncertainty
- US Dollar remains stuck and shows little progress
Trump at Davos: Pushes NATO 5%, lower oil prices, and EU tariff warnings
President Trump spoke virtually at Davos, covering various topics. He said he’d ask OPEC to lower oil prices, noting the US has the largest oil and gas reserves. On tariffs, he urged businesses to manufacture in the US or face penalties. Trump criticized the EU for its tariffs on US products and targeting major tech companies like Apple, Meta, and Google. He called for NATO members to raise defense spending to 5% of GDP and promised a 15% corporate tax rate for US-made products. He also stressed demanding respect from other nations, praised US-China relations, and highlighted positive dealings with Mexico.
US jobless claims edge up, while ongoing applications soar
Initial jobless claims rose to 223k, slightly above the 220k forecast, while the 4-week average increased to 213.5k. Continued claims surged to 1.899 million, surpassing expectations. The rise was mainly driven by a 6.7k increase in California claims due to recent wildfires. Overall, unadjusted claims fell by 68k, less than the expected 75.7k seasonal decline. Analysts notes that continued claims remain high, indicating difficulty for jobseekers to find new employment.
Japan's inflation hits 3%, boosting rate-hike prospects
Japan’s main inflation measure reached 3% for the first time in 16 months, highlighting ongoing price pressures just hours before the central bank is expected to raise rates for the third time under Governor Kazuo Ueda. The CPI excluding fresh food increased by 3% year-on-year in December, up from 2.7% the previous month, driven by higher energy costs. This reading aligned with expectations and marked the first 3% rise since August 2023. Meanwhile, an index excluding energy and fresh food prices rose by 2.4%, consistent with November's rate.
Thai exports beat forecasts in December, with January growth expected despite trade uncertainty
Thailand’s exports grew 8.7% in December, marking the sixth consecutive month of growth and surpassing expectations, while imports rose 14.9%, leading to a trade deficit of $10.6 million. For 2024, exports increased by 5.4%, and imports rose 6.3%, resulting in a $6.3 billion trade deficit. The commerce ministry targets 2%-3% export growth in 2025 and expects further increases in January, despite concerns over U.S. trade policies. The commerce minister plans to visit the U.S. next month to discuss trade and tariffs.
US Dollar remains stuck and shows little progress
The 10-year government bond yield (interpolated) on the previous trading day was 2.313, -3.47 bps. The benchmark government bond yield (LB346A) was 2.32, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 4.65, +5.0 bps. USDTHB on the previous trading day closed around 33.95, moving in a range of 33.95 – 33.97 this morning. USDTHB could be closed between 33.80 – 34.10 today. The dollar slightly weakened, with a brief rise after Trump’s Davos appearance, where he stated businesses must make products in America or face tariffs. However, support for the dollar faded due to the lack of details on tariffs, and recent data releases had a minimal impact. The euro fluctuated around the 1.0400 mark against the dollar but managed small gains. The Japanese yen steadily strengthened as the BoJ policy decision approached, with reports suggesting a potential rate hike.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
