- USDTHB: moving in the range 36.20-36.255 this morning supportive level at 36.15 resistance level at 36.40
- SET Index: 1,291.6 (-0.50%), 25 July 2024
- S&P 500 Index: 5,399.2 (-0.52%), 25 July 2024
- Thai 10-year government bond yield (interpolated): 2.62 (-1.56 bps), 25 July 2024
- US 10-year treasury yield: 4.27 (-1.0 bps), 25 July 2024
- U.S. GDP grew 2.8% in Q2, surpassing expectations
- US weekly jobless claims fall more than expected
- German Ifo index falls sharply in July
- Tokyo CPI inflation was subdued in July ahead of the BOJ meeting
- The dollar was mixed, with focus shifting to the monthly Core PCE Index
U.S. GDP grew 2.8% in Q2, surpassing expectations
The U.S. economy experienced stronger growth than anticipated in the second quarter, thanks to robust consumer spending and business investment. However, inflationary pressures eased, maintaining the likelihood of a September interest rate cut by the Federal Reserve. The gross domestic product (GDP) rose at an annualized rate of 2.8% last quarter, surpassing the expected 2.0% and significantly improving from the 1.4% growth rate in the first quarter. Consumer spending, which makes up over two-thirds of the economy, grew at a rate of about 2.3%, up from a slower 1.5% in the January-March period, with increased expenditure on services driving this rise.
US weekly jobless claims fall more than expected
New U.S. unemployment claims fell more than expected last week, dropping 10,000 to 235,000. Economists had predicted 238,000 claims. The number of people receiving ongoing benefits also decreased by 9,000 to 1.851 million.
German Ifo index falls sharply in July
Germany's business outlook unexpectedly declined, raising worries about the recovery of Europe’s largest economy. The Ifo institute’s expectation index fell to 86.9 in July from a revised 88.8 the previous month, contrary to economists' forecasts of a slight increase. Both the current conditions gauge and the overall index also dropped. This drop in business confidence, combined with Wednesday’s surprising fall in the S&P Global PMI, underscores the challenges Germany faces in bouncing back after two years of near-stagnation.
Tokyo CPI inflation was subdued in July ahead of the BOJ meeting
In July, consumer price index (CPI) inflation in Tokyo showed only modest growth, presenting mixed signals on future price trends ahead of the upcoming Bank of Japan meeting. Headline CPI inflation rose by 2.2%, slightly below the expected 2.3%. Core inflation, which excludes fresh food and energy costs, decreased to 1.5% from 1.8%. This core figure, closely monitored by the BOJ as an indicator of underlying inflation, fell further below the BOJ’s 2% annual target, potentially delaying any future interest rate increases.
The dollar was mixed, with focus shifting to the monthly Core PCE Index
The 10-year government bond yield (interpolated) on the previous trading day was 2.62, -1.56 bps. The benchmark government bond yield (LB346A) was 2.62, -1.0 bps. Meantime, the latest closed US 10-year bond yields was 4.28, +3.0 bps. USDTHB on the previous trading day closed around 36.16 moving in a range of 36.20 – 36.255 this morning. USDTHB could be closed between 36.15 - 36.40 today. The dollar was mixed against its peers, with the dollar index ultimately flat for the day after a choppy session. Brief support was seen following higher-than-expected US data, while the focus now shifts to the June Core PCE Index data. The euro was flat against the dollar due partly to Germany's Ifo index falling more than expected. The Japanese yen pared early gains, with USD/JPY retesting the 154.00 level ahead of the upcoming BoJ policy meeting.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
