- USDTHB: moving in the range 35.55-35.60 this morning supportive level at 35.40 resistance level at 35.70
- SET Index: 1,322.8 (+0.14%), 1 Aug 2024
- S&P 500 Index: 5,446.7 (-1.38%), 1 Aug 2024
- Thai 10-year government bond yield (interpolated): 2.579 (-0.88 bps), 1 Aug 2024
- US 10-year treasury yield: 3.99 (-10.0 bps), 1 Aug 2024
- US weekly jobless claims rise to 11-month high
- US manufacturing gauge drops to eight-month low
- Bank of England cautious after narrow rate cut vote
- China’s manufacturing shrinks in July, Caixin PMI reports
- Dollar gains from the risk-off mood; pound slips after rate cut
US weekly jobless claims rise to 11-month high
Last week, new unemployment benefit applications in the U.S. rose to an 11-month high, indicating potential labor market softness, though claims are typically volatile at this time of year. Initial claims for state benefits climbed by 14,000 to a seasonally adjusted 249,000 for the week ending July 27, the highest since August. Economists had predicted 236,000.
US manufacturing gauge drops to eight-month low
In July, U.S. manufacturing activity fell to an eight-month low due to a decline in new orders, though this may overstate the industry's difficulties since factory production rebounded significantly in the second quarter. The Institute for Supply Management (ISM) reported that its manufacturing PMI fell to 46.8 last month, the lowest level since November, down from 48.5 in June. Economists had expected a slight increase to 48.8.
Bank of England cautious after narrow rate cut vote
The Bank of England cut interest rates from a 16-year high on Thursday following a tight vote by its policymakers, who were split over whether inflation pressures had eased sufficiently. Governor Andrew Bailey led the 5-4 decision to reduce rates by a quarter point to 5%. The BOE offered no specific guidance on where rates may settle or on the pace of any future moves needed to reach that point. Officials will simply study and react to the facts at each of their forthcoming meetings.
China’s manufacturing shrinks in July, Caixin PMI reports
Chinese manufacturing activity unexpectedly contracted, suggesting a slowdown in the country’s major economic sectors. The Caixin manufacturing PMI fell to 49.8, below the expected 51.4 and down from 51.8 in June. A reading under 50 signifies contraction, with this being the first decline since October. This result aligns with official manufacturing PMI data released on Wednesday, which also indicated sector contraction for the third month in a row. While the Caixin data, which focuses on smaller private firms in Southern China, has often differed from the official figures, which cover larger state-run enterprises in the North, both reports now reflect similar downturns.
Dollar gains from the risk-off mood; pound slips after rate cut
The 10-year government bond yield (interpolated) on the previous trading day was 2.579, -0.88 bps. The benchmark government bond yield (LB346A) was 2.58, +0.00 bps. Meantime, the latest closed US 10-year bond yields was 3.99, -10.0 bps. USDTHB on the previous trading day closed around 35.48 moving in a range of 35.55 – 35.60 this morning. USDTHB could be closed between 35.40 - 35.70 today. The dollar gained strength and safe-haven currencies saw the most benefit from the risk-off sentiment prompted by disappointing ISM Manufacturing PMI data. The euro fell below 1.08, with further weakness following the release of European PMIs. The British pound lagged after the BoE cut rates by 25bps to 5.00%, as anticipated. The Japanese yen strengthened due to haven demand, with USD/JPY remaining below 150.00, though it was off its Asia-Pacific lows.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
