- USDTHB: moving in the range 34.93-34.96 this morning supportive level at 34.85 resistance level at 35.15
- SET Index: 1,451.5 (+0.44%), 13 Nov 2024
- S&P 500 Index: 5,985.4 (+0.02%), 13 Nov 2024
- Thai 10-year government bond yield (interpolated): 2.443 (+0.79 bps), 13 Nov 2024
- US 10-year treasury yield: 4.44 (+1.0 bps), 13 Nov 2024
- US consumer prices rise by 2.6% annually in October
- Fed officials concerned about how much they can reduce interest rates
- Australia jobs rise less than expected in October as growth cools
- Dollar hits one-year high on Trump trades
US consumer prices rise by 2.6% annually in October
US inflation remained steady in October, highlighting the continued challenges the Federal Reserve faces in fully controlling price pressures. The consumer price index increased by 2.6% year-over-year, up from 2.4% in September. On a monthly basis, the index rose by 0.2%, consistent with the pace seen in September. Meanwhile, core CPI rose 0.28%, matching expectations and the prior month's increase, though slightly lower on an unrounded basis. Year-over-year, it held steady at 3.3%. Key contributors to the CPI increase included rent (up 0.30%) and used car prices (up 2.7%), which together significantly boosted core inflation.
Fed officials concerned about how much they can reduce interest rates
Several Federal Reserve officials on Wednesday expressed continued uncertainty about how much further the central bank may need to reduce interest rates, highlighting the challenge of determining the right rate level to stabilize the economy. Fed's Schmid acknowledged the uncertainty but emphasized that the current rate cuts reflect growing confidence that inflation is on track to reach the 2% target. Fed's Kashkari noted that the latest inflation data supports the Fed's current approach and expressed confidence that inflation is heading in the right direction. He also mentioned that while inflation hasn't yet dropped below 2%, wages are declining, and he sees limited inflation risks. Lastly, Fed's Logan indicated that more rate cuts are likely but urged caution, as the timing and extent of cuts remain uncertain. She added that models suggest the federal funds rate is near neutral, and cutting too much could risk reigniting inflation.
Australia jobs rise less than expected in October as growth cools
Australia's job market grew more slowly than expected in October, signaling a cooling after six months of robust expansion. The number of employed people increased by 15,900, below the expected rise of 25,200 and a sharp slowdown from the 64,100 gain in September. Meanwhile, the unemployment rate remained steady at 4.1%, matching both the previous month's rate and market expectations.
Dollar hits one-year high on Trump trades
The 10-year government bond yield (interpolated) on the previous trading day was 2.443, +0.79 bps. The benchmark government bond yield (LB346A) was 2.42, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.44, +1.00 bps. USDTHB on the previous trading day closed around 34.75, moving in a range of 34.93 – 34.96 this morning. USDTHB could be closed between 34.85 – 35.15 today. The dollar initially weakened following the October CPI report, which showed all metrics in line with expectations. The DXY dropped to 105.71 as markets increased the likelihood of a 25bps rate cut in December to about 85%, up from 60% before the data. However, the dollar regained strength after the US cash open, as renewed optimism around a "Trump trade" offset the data's implications, pushing the DXY to a new YTD high. The euro saw its fourth consecutive daily loss against the dollar, falling below the 1.0600 mark. ECB's Villeroy had previously commented that he expects more rate cuts and forecasts the French unemployment rate to rise to around 8% before easing back to 7%. The Japanese yen continued to weaken as the dollar strengthened, with USD/JPY climbing steadily above the 155.00 level.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
