- USDTHB: moving in the range 36.155-36.20 this morning supportive level at 36.10 resistance level at 36.30
- SET Index: 1,324.8 (+0.38%), 18 July 2024
- S&P 500 Index: 5,544.6 (-0.78%), 18 July 2024
- Thai 10-year government bond yield (interpolated): 2.62 (+1.47 bps), 18 July 2024
- US 10-year treasury yield: 4.20 (+4.0 bps), 18 July 2024
- Biden faces rising pressure to withdraw
- US Initial Jobless Claims surge most since May
- ECB keeps rates steady, seeks more data before next cut
- Japan's CPI inflation rises slightly below expectations in June
- Euro steady as ECB keeps September cut option open
Biden faces rising pressure to withdraw
President Joe Biden's grip on the Democratic nomination appeared to weaken as he faced growing party warnings while isolating at his Delaware beach house with Covid-19. Despite assurances from his team that he remains committed, pressure mounted. Speculation about his potential withdrawal overshadowed the lead-up to Donald Trump's Republican nomination acceptance, with senior Democrats hoping he might drop out as soon as this weekend.
US Initial Jobless Claims surge most since May
Initial Jobless Claims rose to 243k from 223k, above the 230k forecast. The four-week average increased to 234.75k. Continued Claims reached 1.867 million, exceeding the 1.855 million forecast. Analysts noted that the increase in claims is significant, partly due to seasonal adjustments that typically reduce the headline number, and due to a sharp rise in claims in Texas related to Hurricane Beryl. They suggested that the increase aligns with a cooling labor market, characterized by slower hiring rather than higher layoffs.
ECB keeps rates steady, seeks more data before next cut
The ECB chose to keep interest rates unchanged after the 25bps reduction in June. The Governing Council stated it will maintain a tight policy stance as needed to meet its goals and will continue to base decisions on data without committing to a specific path. President Lagarde highlighted that the economy grew in Q2, but slower than in Q1, and inflation is expected to stay steady until it declines toward the target in the latter half of 2025 due to falling unit labor costs. Lagarde suggested that the September meeting remains open to different outcomes.
Japan's CPI inflation rises slightly below expectations in June
In June, Japan's consumer price index inflation increased slightly less than anticipated, with consumer spending showing only a modest rise. This adds to the uncertainty about when the Bank of Japan might decide to raise interest rates further. Headline CPI inflation stayed at 2.8%. National core CPI rose 2.6% year-on-year in June, missing the 2.7% forecast but up from 2.5% in May. The core CPI excluding fresh food and fuel increased 2.2%, up from 2.1% in May, but remains near two-year lows.
Euro steady as ECB keeps September cut option open
The 10-year government bond yield (interpolated) on the previous trading day was 2.62, +1.47 bps. The benchmark government bond yield (LB346A) was 2.62, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.20, +4.0 bps. USDTHB on the previous trading day closed around 35.96 moving in a range of 36.155 – 36.20 this morning. USDTHB could be closed between 36.10 - 36.30 today. The Dollar strengthened with the DXY back above 104.00 as risk-off sentiment was sparked amid a further diminishing of Biden's re-election chances. The Euro held steady on Thursday, following the European Central Bank's decision to leave interest rates unchanged. The Japanese yen underperformed to give back some of its recent advances after the latest BoJ data did not immediately show evidence of intervention.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
