- USDTHB: moving in the range 33.78-33.815 this morning supportive level at 33.70 resistance level at 33.90
- SET Index: 1,262.1 (-1.9%), 6 Feb 2025
- S&P 500 Index: 6,083.6 (+0.36%), 6 Feb 2025
- Thai 10-year government bond yield (interpolated): 2.277 (+0.36 bps), 6 Feb 2025
- US 10-year treasury yield: 4.45 (+2.0 bps), 6 Feb 2025
- US initial jobless claims rise but remain close to pre-covid levels
- Japan's household spending surges as wages rise
- Bank of England cuts rates, signals caution ahead
- Thailand's CPI rose 1.32% in January, meeting the central bank's target
- Dollar remained flat ahead of the key US payrolls report
US initial jobless claims rise but remain close to pre-covid levels
New claims for US unemployment benefits rose last week but stayed relatively low. They increased by 11,000 to 219,000 for the week ending February 1, while the median forecast had expected 213,000. Continuing claims also went up to 1.89 million for the week ending January 25. Despite the increase, initial claims remain close to pre-COVID levels, and ADP Research's private employment data showed strong hiring in January. The four-week moving average of new claims rose slightly to 216,750, the highest in a month.
Japan's household spending surges as wages rise
Japan’s households increased consumption at the fastest pace since August 2022, with strong wage gains driving a 2.7% rise in inflation-adjusted spending in December. This surpassed expectations, boosting the three-month moving average to 0.5%. Nominal spending rose 7% year-on-year, driven by a 15.8% jump in housing, along with increased spending on transportation, communication, and medicine.
Bank of England cuts rates, signals caution ahead
Bank of England officials unanimously agreed to reduce interest rates to a 19-month low, with two members advocating for a larger 50-basis-point cut, leading markets to increase expectations for further rate reductions. The Monetary Policy Committee lowered the benchmark rate by 0.25% to 4.5%, marking the third such cut since August. However, the MPC expressed caution about the rate outlook, indicating that only two more cuts would be needed to bring inflation to the bank's 2% target. Policymakers also dealt a setback to Chancellor Rachel Reeves, warning that inflation would rise "quite sharply" to 3.7% later this year, while downgrading growth and their estimate of the economy's ability to expand without causing price pressures.
Thailand's CPI rose 1.32% in January, meeting the central bank's target
Thai inflation rose in January, in line with expectations and within the central bank’s target range for the second month, driven by higher energy and food costs. The CPI increased 1.32% year-on-year, up from 1.23% in December. Inflation is expected to continue at a similar rate due to higher diesel prices, a recovering tourism industry, and rising agricultural costs from drought. Core CPI rose 0.83%, slightly up from 0.79% in December.
Dollar remained flat ahead of the key US payrolls report
The 10-year government bond yield (interpolated) on the previous trading day was 2.277, +0.36 bps. The benchmark government bond yield (LB346A) was 2.28, -1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.45, +2.0 bps. USDTHB on the previous trading day closed around 33.66, moving in a range of 33.78 – 33.815 this morning. USDTHB could be closed between 33.70 – 33.90 today. The dollar remained flat ahead of the US payrolls report, with weaker-than-expected data, including higher jobless claims and lower Unit Labour Costs. The euro weakened below 1.0400, pressured by dovish ECB comments. The British pound underperformed after a dovish BoE rate cut, while the Japanese yen outperformed, with USD/JPY staying below 152.00 following hawkish BoJ remarks.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
