- USDTHB: moving in the range 33.61-33.66 this morning supportive level at 33.50 resistance level at 33.80
- SET Index: 1,335.6 (-0.56%), 30 Jan 2025
- S&P 500 Index: 6,071.2 (+0.53%), 30 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.271 (-0.52 bps), 30 Jan 2025
- US 10-year treasury yield: 4.52 (-3.0 bps), 30 Jan 2025
- US economy grows 2.3% in Q4 2024, driven by consumer resilience
- Trump to impose 25% tariffs on Canada and Mexico starting Saturday
- ECB reduces rates for the fifth time as the Eurozone economy stagnates
- Tokyo inflation hits a year-high, supporting BOJ
- The dollar strengthened broadly following the tariff announcement
US economy grows 2.3% in Q4 2024, driven by consumer resilience
The US economy grew at a solid pace in Q4 2024, expanding 2.3% annualized, driven by strong consumer spending that offset the impact of a Boeing strike and reduced inventory investment. This growth followed a 3.1% rise in Q3, slightly missing the 2.6% forecast. Consumer spending increased by 4.2%, the first back-to-back quarter above 3% since late 2021, helping offset weaknesses in inventories and sentiment, with some spending attributed to households bringing forward purchases ahead of tariffs. Nonresidential fixed investment fell 2.2%, its first decline in over three years, with business spending on equipment down 7.8% due to a Boeing strike. Imports surged, putting downward pressure on GDP, but the overall decline was smaller than expected. In 2024, the US economy grew by 2.8%, following 2.9% and 2.5% growth in the previous two years.
Trump to impose 25% tariffs on Canada and Mexico starting Saturday
resident Donald Trump confirmed he will impose 25% tariffs on imports from Canada and Mexico starting February 1, citing issues like the flow of fentanyl and significant trade deficits. He also announced plans for sectoral tariffs on goods such as pharmaceuticals, semiconductor chips, steel, aluminum, and copper, which could affect multiple countries, including Canada and Mexico.
ECB reduces rates for the fifth time as the Eurozone economy stagnates
The European Central Bank cut borrowing costs for the fifth time since June, as the region's economy stalled, and the 2% inflation target remained within reach. Officials lowered the deposit rate by 0.25 percentage points to 2.75%, as expected, while maintaining their "restrictive" monetary policy stance, suggesting further easing may come. Despite a recent rise in inflation, policymakers are confident their target will be met this year, focusing more on the eurozone's struggling economy, which unexpectedly stagnated at the end of 2024. Lagarde noted that Europe’s economy will stay weak in the near term, with risks to the outlook still leaning negative due to potential global trade tensions.
Tokyo inflation hits a year-high, supporting BOJ
Tokyo's price growth accelerated, with consumer prices (excluding fresh food) rising 2.5% in January, the fastest increase since last February. Higher processed food prices, especially rice, drove the rise. This suggests sustained inflationary pressures, supporting the Bank of Japan's recent decision to raise borrowing costs to their highest level since 2008.
The dollar strengthened broadly following the tariff announcement
The 10-year government bond yield (interpolated) on the previous trading day was 2.271, -0.52 bps. The benchmark government bond yield (LB346A) was 2.28, +1.5 bps. Meantime, the latest closed US 10-year bond yields was 4.52, -3.0 bps. USDTHB on the previous trading day closed around 33.76, moving in a range of 33.61 – 33.66 this morning. USDTHB could be closed between 33.50 – 33.80 today. The dollar strengthened late after Trump announced a 25% tariff on Canada and Mexico over fentanyl, weighing on the MXN and CAD, while other currencies pared gains. Mixed economic data had little impact. The euro initially rose after the ECB's rate cut, but gave back gains following Trump’s tariff comments. The yen strengthened against the dollar, with USD/JPY recovering from a dip below 154.00.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
