- USDTHB: moving in the range 33.61-33.68 this morning supportive level at 33.50 resistance level at 33.80
- SET Index: 1,354.1 (+0.73%), 24 Jan 2025
- S&P 500 Index: 6,101.2 (-0.29%), 24 Jan 2025
- Thai 10-year government bond yield (interpolated): 2.305 (-0.84 bps), 24 Jan 2025
- US 10-year treasury yield: 4.63 (-2.0 bps), 24 Jan 2025
- Trump prefers not to impose tariffs on China but keeps the threat
- US business activity slows as service sector growth eases
- Euro zone businesses kick off the year with a slight rebound in growth
- BoJ hikes interest rates to a 17-year high
- US Dollar ends the week down after economic data and Trump’s remarks
Trump prefers not to impose tariffs on China but keeps the threat
US President Trump stated that his conversation with Chinese President Xi went well and affirmed he could strike a deal with China when asked. He also mentioned he would prefer not to resort to tariffs on China during a pre-taped interview with Fox News.
US business activity slows as service sector growth eases
U.S. business activity slowed in January to its lowest level in nine months due to rising price pressures, but companies increased hiring, reinforcing the Federal Reserve's cautious stance on rate cuts this year. The S&P Global flash January composite PMI dropped 3 points to 52.4. The services activity index fell 4 points to 52.8 after reaching a high in December not seen since March 2022. Meanwhile, the S&P Global manufacturing index rose to 50.1, signaling expansion with growth in output, orders, and employment driven by stronger domestic demand.
Euro zone businesses kick off the year with a slight rebound in growth
Euro zone business saw modest growth in January, with stable services and a slight easing in manufacturing’s downturn. The composite PMI rose to 50.2 from 49.6 in December. Services dipped slightly to 51.4, while manufacturing improved to 46.1 from 45.1. Germany’s private sector stabilized, but France’s services shrank further due to weak demand and political uncertainty.
BoJ hikes interest rates to a 17-year high
The Bank of Japan (BoJ) raised interest rates by 25 basis points to 0.50%, in line with expectations, with an 8-1 vote, the lone dissenting vote coming from Nakamura. The BoJ reaffirmed its stance that it will continue to raise rates if the economy and inflation align with forecasts and emphasized its commitment to adjusting monetary policy as needed to sustainably achieve the 2% inflation target. In addition, the BoJ’s outlook report showed mixed projections, with core CPI forecasts being revised upward across the entire forecast period, while the real GDP projection for fiscal 2024 was lowered, but kept steady for the following years. In the press conference, Ueda initially took a hawkish stance, mentioning spring wage talks and his view that markets have been stable after Trump. However, he later shifted, stating there were no pre-set plans for future adjustments or specific expectations for the timing and scope of the next rate hike.
US Dollar ends the week down after economic data and Trump’s remarks
The 10-year government bond yield (interpolated) on the previous trading day was 2.305, -0.84 bps. The benchmark government bond yield (LB346A) was 2.30, -2.0 bps. Meantime, the latest closed US 10-year bond yields was 4.63, -2.0 bps. USDTHB on the previous trading day closed around 33.78, moving in a range of 33.61 – 33.68 this morning. USDTHB could be closed between 33.50 – 33.80 today. The dollar experienced significant losses, with the index falling to 107.210, continuing the trend seen on Thursday and overnight during the APAC session following Trump's pre-taped interview with Fox News. News for the Dollar was sparse on Friday, as mixed US S&P Global Flash PMIs for January had little impact. G10 currencies were generally stronger, benefiting from the weaker US Dollar. The Japanese yen saw modest gains, with volatility following the BoJ meeting and Ueda’s remarks. Initially hawkish, Ueda’s comments on the policy path later turned dovish, triggering a decline in Japanese assets. USD/JPY reached a high of 156.57 before dropping to a low of 154.86.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
