- USDTHB: moving in the range 36.285-36.325 this morning supportive level at 36.20 resistance level at 36.40
- SET Index: 1,317.1 (-0.58%), 19 July 2024
- S&P 500 Index: 5,564.4 (+1.07%), 22 July 2024
- Thai 10-year government bond yield (interpolated): 2.63 (+0.83 bps), 19 July 2024
- US 10-year treasury yield: 4.26 (+1.0 bps), 22 July 2024
- Biden exits race, backs Harris
- Nvidia developing AI chip for China
- PBOC cuts rates to boost the economy
- US dollar edges up as Biden ends campaign
Biden exits race, backs Harris
President Biden has withdrawn from the 2024 presidential race and endorsed his Vice President, Kamala Harris, as the Democratic candidate. Prediction markets currently estimate an approximately 80% chance that Harris will secure the nomination and indicate a slight improvement in the Democrats' likelihood of winning the White House. However, the probabilities for House and Senate races remain largely unchanged. The Democrats will officially nominate their candidate at the Democratic National Convention from August 19-22. According to Reuters, Harris has supported Big Tech and received donations from tech leaders. She has warned about AI risks, backed Biden’s consumer protection order, and shares Biden’s focus on clean energy and environmental justice. Nonetheless, she also faces the historic challenge of potentially becoming the first female president and only the second Black president, following Barack Obama.
Nvidia developing AI chip for China
According to Reuters, Nvidia Corporation is developing a new version of its AI chips for the Chinese market that complies with U.S. export rules. The company will collaborate with its major Chinese distributor, Inspur, to create a chip tentatively named the 'B20.' While Nvidia's existing AI chips are designed to adhere to U.S. export restrictions, products like the H20 have faced challenges in China due to competition from local companies such as Huawei.
PBOC cuts rates to boost the economy
The People's Bank of China made an unexpected move by reducing its benchmark loan prime rates to record lows in an effort to bolster the country's struggling economy. The PBOC lowered the one-year loan prime rate from 3.45% to 3.35%, and the five-year rate, which influences mortgage costs, was cut from 3.95% to 3.85%. This decision follows recent GDP data for the second quarter that fell short of expectations, intensifying worries about the slowdown in economic growth and raising doubts about achieving the central bank's annual GDP growth target. Chinese officials had pledged additional economic stimulus during the Communist Party's Third Plenary Session last week. However, market sentiment remains subdued, partly due to concerns that Donald Trump might secure a second term as U.S. president.
US dollar edges up as Biden ends campaign
The 10-year government bond yield (interpolated) on the previous trading day was 2.63, +0.83 bps. The benchmark government bond yield (LB346A) was 2.625, +0.5 bps. Meantime, the latest closed US 10-year bond yields was 4.26, +1.0 bps. USDTHB on the previous trading day closed around 36.23 moving in a range of 36.285 – 36.325 this morning. USDTHB could be closed between 36.20 - 36.40 today. The Dollar was slightly higher on Monday in quiet trading overall, as investors digested U.S. President Joe Biden's decision to end his re-election campaign, a scenario which could inject more volatility into the currency market. The Japanese yen was hovering around 157.00 as traders await Friday's Tokyo CPI data. However, the yen experienced some weakness after Bloomberg sources indicated that the BoJ views weak consumption as a complicating factor for its rate decision. Meanwhile, the Euro traded in a tight range after its recent failure to maintain the 1.0900 level against the dollar.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
