- USDTHB: moving in the range 33.72-33.77 this morning supportive level at 33.60 resistance level at 33.90
- SET Index: 1,343.2 (-0.19%), 29 Jan 2025
- S&P 500 Index: 6,039.3 (-0.47%), 29 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.276 (-0.21 bps), 29 Jan 2025
- US 10-year treasury yield: 4.55 (+0.0 bps), 29 Jan 2025
- Fed keeps rates unchanged and removes reference to inflation progress
- Trump officials consider stronger restrictions on Nvidia sales to China
- The Bank of Canada cuts rates and drops guidance amid tariff risks
- US dollar steadies as Fed holds rates unchanged
Fed keeps rates unchanged and removes reference to inflation progress
The Federal Reserve kept rates between 4.25% - 4.50% as expected, with a unanimous decision. It made hawkish adjustments to its economic outlook, noting inflation remains "somewhat elevated" and removing the reference to inflation making progress toward the 2% target. It also revised the labor market statement, now saying the "unemployment rate has stabilized at a low level" instead of easing conditions. The rest of the statement remained largely the same, with the Fed maintaining that risks to employment and inflation goals are "roughly in balance.“ In the press conference, Chair Powell said the Fed isn’t in a rush to adjust policy and is not on a preset course. He explained the removal of the inflation progress reference was just a "language clean-up," causing a dovish market reaction. Powell noted good inflation data but wants more progress, especially with shelter inflation dropping. He cautioned that while conditions are set for progress, it’s not guaranteed. Regarding Trump’s policies, he stated the Fed is waiting to see what happens with fiscal and regulatory changes.
Trump officials consider stronger restrictions on Nvidia sales to China
Officials in the Trump administration are considering further restrictions on Nvidia Corp.'s chip sales to China, according to sources familiar with the matter. These discussions are still in the early stages as the new team prioritizes policy matters. The focus is on potentially expanding the curbs to include Nvidia's H20 chips, which are designed to run artificial intelligence software and meet current US restrictions on shipments to China. A decision on these restrictions is expected to be some time away, as the administration is still in the process of filling key positions.
The Bank of Canada cuts rates and drops guidance amid tariff risks
The Bank of Canada cut rates by 25bps to 3.00%, in line with expectations, aligning with its neutral rate range of 2.25-3.25%. It also removed forward guidance, noting the substantial rate cuts since June and no longer suggesting further reductions would be evaluated one step at a time. The BoC acknowledged that easing is boosting household spending and expects gradual economic growth, with inflation staying near target. While inflation forecasts for 2025-2026 were revised upward, growth projections were lowered. These forecasts don't include potential US tariffs starting February 1, which could test the economy's resilience.
US dollar steadies as Fed holds rates unchanged
The 10-year government bond yield (interpolated) on the previous trading day was 2.276, -0.21 bps. The benchmark government bond yield (LB346A) was 2.2625, -1.75 bps. Meantime, the latest closed US 10-year bond yields was 4.55, +0.0 bps. USDTHB on the previous trading day closed around 33.74, moving in a range of 33.72 – 33.77 this morning. USDTHB could be closed between 33.60 – 33.90 today. The dollar fluctuated after the FOMC meeting, where the Fed kept rates steady but removed language about inflation making progress toward the 2% goal while noting solid labor market conditions. The initial hawkish reaction reversed during Powell's press conference, where he explained the inflation change was just a "language cleanup" and reiterated the Fed isn't rushing to cut rates, despite two positive inflation reports. The euro weakened and briefly fell below the 1.0400 mark before recovering after the FOMC meeting and press conference. The Japanese yen strengthened slightly, with USD/JPY finding support around the 155.00 level, limiting further downside.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
