- USDTHB: moving in the range 32.605-32.64 this morning supportive level at 32.50 resistance level at 32.75
- SET Index: 1,082.4 (-2.2%), 27 June 2025
- S&P 500 Index: 6,173.1 (+0.52%), 27 June 2025
- Thai 10-year government bond yield (interpolated): 1.60 (-1.45 bps), 27 June 2025
- US 10-year treasury yield: 4.29 (+3.0 bps), 27 June 2025
- US core PCE rose more than expected in May
- Trump cuts trade talks with Canada amid digital tax dispute
- Senate gives initial approval to Trump’s expansive tax and spending legislation
- Slight inflation uptick in France and Spain not troubling ECB
- Dollar rises as Trump sparks new trade worries
US core PCE rose more than expected in May
Core PCE rose 0.2% in May, exceeding the 0.1% forecast and accelerating from the previous 0.1%. For annual basis, core PCE increased to 2.7%, above expectations, with the previous figure revised up to 2.6% from 2.5%. Meanwhile, headline PCE came in line with forecasts, rising 0.1% month-over-month and 2.3% year-over-year, up from a revised 2.2%. The hotter-than-expected core PCE underscores persistent inflation, remaining above the Fed’s 2% target, and raises concerns that upcoming tariffs may further elevate price pressures. Elsewhere, personal income fell 0.4% (vs. +0.3% expected), adjusted consumption slipped 0.1%, and real consumption dropped 0.3%, reversing the prior month’s 0.1% gain.
Trump cuts trade talks with Canada amid digital tax dispute
President Donald Trump announced the suspension of all trade talks with Canada in response to the country’s digital services tax and threatened new tariffs within a week. The tax, enacted a year ago, is set to take effect Monday, with initial payments due despite business warnings that it could raise service costs and provoke U.S. retaliation. Canadian officials and business groups have reacted strongly, with Prime Minister Mark Carney affirming Canada’s commitment to ongoing complex negotiations, while some urge dropping the tax to resume trade discussions.
Senate gives initial approval to Trump’s expansive tax and spending legislation
President Trump’s major tax cut and spending bill passed its first Senate hurdle on Saturday with a narrow 51–49 vote, boosting its chances of full approval soon. Trump celebrated the vote as a significant victory, calling it a “great big, beautiful bill.” However, the non-partisan Congressional Budget Office warned that the Senate version would add $3.3 trillion to the US national debt over the next decade.
Slight inflation uptick in France and Spain not troubling ECB
Inflation ticked up in France and Spain in June, but not enough to worry ECB officials, who remain confident in meeting their 2% target. France saw a rise to 0.8%, driven by services, while Spain’s 2.2% increase matched forecasts, led by higher fuel and food prices.
Dollar rises as Trump sparks new trade worries
The 10-year government bond yield (interpolated) on the previous trading day was 1.60, -1.45 bps. The benchmark government bond yield (LB353A) was 1.61, -0.76 bps. Meantime, the latest closed US 10-year bond yields was 4.29, +3.0 bps. USDTHB on the previous trading day closed around 32.54, moving in a range of 32.605 – 32.64 this morning. USDTHB could be closed between 32.50 – 32.75 today. The dollar index ended its four-day decline after President Trump renewed tariff threats against Canada, triggering risk-off sentiment in FX markets. Meanwhile, May’s PCE data revealed persistent core inflation and an unexpected decline in personal income, causing a brief dip in the dollar before it rebounded. The Atlanta Fed also revised its Q2 GDP forecast down to 2.9% from 3.4% after recent US reports. G10 FX was mostly flat or weaker vs. the dollar. The euro gained after reports the EU may cut US tariffs to win Trump’s favor, with a deal expected by July 9. Meanwhile, stronger-than-expected preliminary CPI data from France and Spain weighed on Bunds. The euro outperformed, with EUR/USD around 1.1700 going into the weekend.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
