- USDTHB: moving in the range 36.76-36.77 this morning supportive level at 36.65 resistance level at 36.85
- SET Index: 1,299.4 (-0.12%), 1 July 2024
- S&P 500 Index: 5,475.1 (+0.27%), 1 July 2024
- Thai 10-year government bond yield (interpolated): 2.67 (+0.18 bps), 1 July 2024
- US 10-year treasury yield: 4.48 (+12.00 bps), 1 July 2024
- US manufacturing continues to decline, while inflationary pressures are diminishing
- Euro zone Manufacturing PMI decline deepens in June
- German inflation decreases more than anticipated in June
- UK manufacturing growth slows as shipping delays hit exports
- US dollar climbs to new 38-year peak vs yen; euro rises after French elections
US manufacturing continues to decline, while inflationary pressures are diminishingy
U.S. manufacturing declined for the third consecutive month in June due to subdued demand, while a decrease in the prices factories paid for raw materials to a six-month low suggested that inflation might continue to decrease. The ISM's manufacturing PMI dropped to 48.5 last month from 48.7 in May. The group's gauge of material costs fell by 4.9 points, marking the largest decline since May 2023. With a reading of 52.1, the index indicates the slowest increase in costs so far this year.
Euro zone Manufacturing PMI decline deepens in June
In June, the Euro zone's manufacturing Purchasing Managers' Index (PMI) decreased to 45.8 from May's 47.3, slightly above the preliminary estimate of 45.6. The index measuring new orders fell to 44.4 from 47.3. Despite factories reducing prices for the fourteenth consecutive month, albeit at a slower rate than before, manufacturing activity in the Euro zone worsened last month due to a sharper decline in demand. Regarding individual countries, PMI indices for all Euro zone nations except Italy deteriorated in June.
German inflation decreases more than anticipated in June
In June, German inflation dropped more than predicted, reversing its upward trend seen over the past two months. This development raises the possibility of another interest rate reduction by the ECB in September. Preliminary data shows inflation decreased to 2.5% from 2.8% in May, which is lower than analysts' forecast of 2.6%."
UK manufacturing growth slows as shipping delays hit exports
UK manufacturing PMI expanded at a slower pace last month compared to May's 22-month peak, partly due to ongoing shipping disruptions in the Red Sea that reduced demand from international clients. S&P Global's UK PMI decreased to 50.9 in June, down from 51.2 in May, marking a final reading lower than the provisional June figure of 51.4. According to S&P Global, the overall assessment remained positive with increases in output and new orders, but employment declined, delivery times extended, and manufacturers faced the swiftest rise in input costs since January 2023.
US dollar climbs to new 38-year peak vs yen; euro rises after French elections
The 10-year government bond yield (interpolated) on the previous trading day was 2.67, +0.18 bps. The benchmark government bond yield (LB346A) was 2.67, +0.0 bps. Meantime, the latest closed US 10-year bond yields was 4.48, +12.00 bps. USDTHB on the previous trading day closed around 36.74 moving in a range of 36.76 - 36.77 this morning. USDTHB could be closed between 36.65-36.85 today. The US Dollar was ultimately bid with DXY finding resistance at 106.00. The Dollar had started the session on the back foot with upside in Euro keeping pressure on the buck but with UST yields rising throughout the session, the buck managed to claw back the earlier losses. The Euro was ultimately flat on Monday, but initial upside was seen in response to the 1st round of French Elections. The Japanese yen continued its decline with firmer US yields adding to the Yen woes. USD/JPY peaked at 161.73, another multi-decade high.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
