- USDTHB: moving in the range 36.395-36.47 this morning supportive level at 36.35 resistance level at 36.55
- SET Index: 1,322.5 (+0.8%), 8 July 2024
- S&P 500 Index: 5,572.9 (+0.10%), 8 July 2024
- Thai 10-year government bond yield (interpolated): 2.67 (-1.19 bps), 8 July 2024
- US 10-year treasury yield: 4.28 (+0.00 bps), 8 July 2024
- Joe Biden vowed to stay in the presidential race
- Japan posts current account surplus of $17.7 billion in May
- China's central bank adopts new tool for liquidity and interest rates.
- Dollar stabilizes ahead of key data
Joe Biden vowed to stay in the presidential race
President Biden assured members of Congress that he is fully committed to remaining in the presidential election race. He emphasized having had thorough discussions with Democratic party leaders and elected officials. Additionally, Biden acknowledged he is attentive to people's concerns and stated his confidence in being the most qualified candidate to defeat Trump.
Japan posts current account surplus of $17.7 billion in May
Japan's current account surplus extended its growth streak to 15 consecutive months in May, driven by a record primary income surplus that outweighed a trade deficit. This reflects a continuing evolution in the country's earnings sources. In May, the current account surplus reached 2.85 trillion yen ($17.74 billion), surpassing economists' median forecast of 2.45 trillion yen and exceeding the previous month's surplus of 2.05 trillion yen. Returns from overseas securities investments, including higher interest payments due to elevated long-term rates and dividends, were bolstered by a weaker yen. The trade balance shifted to a deficit of 1.1 trillion yen for the second consecutive month, with exports totaling 8.13 trillion yen (up 12.1% from a year ago) and imports rising 9.3% compared to May of the previous year. Japan's current account surplus, once seen as a symbol of export strength and a pillar of confidence in the yen as a safe-haven currency, continues to reflect changing economic dynamics.
China's central bank adopts new tool for liquidity and interest rates.
China's central bank announced on Monday its plan to initiate short-term bond repurchase agreements, known as reverse repos, aimed at enhancing the efficiency of open market operations and ensuring ample liquidity in the banking system. This move is seen by market participants and analysts as laying the groundwork for a new interest rate framework, where the seven-day reverse repo rate will play a pivotal role, providing flexibility for the bank to manage cash conditions and interest rates amidst high demand for bonds. These temporary repos and reverse repos will involve overnight loans and will be implemented based on prevailing market conditions. The interest rates for these transactions will be set at 20 basis points below and 50 basis points above the rate for seven-day reverse repurchase operations, specifically 1.6% and 2.3% respectively.
Dollar stabilizes ahead of key data
The 10-year government bond yield (interpolated) on the previous trading day was 2.67, -1.19 bps. The benchmark government bond yield (LB346A) was 2.67, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.28, +0.00 bps. USDTHB on the previous trading day closed around 36.43 moving in a range of 36.395 - 36.47 this morning. USDTHB could be closed between 36.35-36.55 today. The dollar was ultimately flat on Monday with a lack of Fed speakers and tier 1 data seeing the DXY trade either side of 105.00. Euro marginally softened with the single currency contained as participants reflected on the French hung parliament. British Pounds saw two-way price action and eventually returned to flat territory against the dollar around a 1.2800 focal point. Japanese yen was choppy which saw USD/JPY trade on both sides of the 161.00 level
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
