- USDTHB: moving in the range 34.55-34.62 this morning supportive level at 34.45 resistance level at 34.75
- SET Index: 1,456.5 (-0.56%), 11 Nov 2024
- S&P 500 Index: 6,001.4 (+0.10%), 11 Nov 2024
- Thai 10-year government bond yield (interpolated): 2.440 (+0.21 bps), 11 Nov 2024
- US 10-year treasury yield: 4.30 (-1.0 bps), 8 Nov 2024
- BOJ cautious on rate hike, no clear December signal
- China's October new lending tumbles more than expected despite policy support
- Thai panel picks government’s candidate for central bank board chair
- Dollar stays strong ahead of CPI and Fed talks
BOJ cautious on rate hike, no clear December signal
A summary of opinions from the Bank of Japan's October meeting, released on Monday, revealed that policymakers were divided on when to raise interest rates. Some members cautioned that renewed market volatility could follow the U.S. presidential election. Several BOJ officials emphasized the importance of addressing the economic impact of market movements, especially as the meeting took place just days before the U.S. election on November 5. This suggests that fluctuations in the yen will play a crucial role in determining when the BOJ may increase rates. Although the risk of a U.S. economic downturn has decreased, the BOJ noted that it was too soon to assume markets would stabilize, given that trade activity was influenced by speculation about the election outcome.
China's October new lending tumbles more than expected despite policy support
New bank lending in China dropped more than anticipated in October compared to the previous month, falling short of analysts' forecasts. Despite increased policy stimulus aimed at supporting the struggling economy, credit demand remained weak. Chinese banks issued 500 billion yuan ($69.51 billion) in new yuan loans in October, a significant decline from September and below analysts' projections. Economists had expected new loans to decrease to 700 billion yuan in October, down from 1.59 trillion yuan the month before and 738.4 billion yuan in the same month last year.
Thai panel picks government’s candidate for central bank board chair
On Monday, a Thai panel selected Kittiratt na Ranong, a loyalist of the ruling party and former Finance Minister, to lead the central bank's board, according to two government sources. This decision supports the government's nominee despite worries about potential political interference. The move comes amid concerns from economists and four former central bank governors regarding the nomination and the possibility of the government exerting influence over the monetary authority.
Dollar stays strong ahead of CPI and Fed talks
The 10-year government bond yield (interpolated) on the previous trading day was 2.440, +0.21 bps. The benchmark government bond yield (LB346A) was 2.42, +1.00 bps. Meantime, the latest closed US 10-year bond yields was 4.30, -1.00 bps. USDTHB on the previous trading day closed around 34.30, moving in a range of 34.55 – 34.62 this morning. USDTHB could be closed between 34.45 – 34.75 today. The Dollar Index began the week with an uptick, reflecting typical "Trump Trade" behavior, amid limited market movement due to the US holiday, Veteran’s Day. The G10 currencies were all lower against the US dollar, though to varying extents, with the Japanese yen underperforming, partly due to the latest Bank of Japan (BoJ) Summary of Opinions, which highlighted a lack of urgency regarding interest rate hikes. Consequently, USD/JPY reached a high of 153.95, compared to an earlier low of 152.65. In the eurozone, discussions continued to focus on the risks of tariffs under a potential Trump presidency and ongoing political instability in Germany, which led EUR/USD to trade within a 1.0629-1.0727 range, hitting its lowest level in over six months.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
