Post by account_disabled on Jan 6, 2024 5:36:58 GMT
Global Markets Group Bank of Ayudhya Public Company Limited has commented on the results of the US Federal Reserve (Fed) meeting, which announced a reduction in the policy interest rate by 0.25% to a range of 2.00-2.25% in line with market expectations. It was the first interest rate cut in more than 10 years, with a unanimous 8-2 vote, with two dissenters wanting the Fed to keep interest rates unchanged. As a result, the baht weakens and the dollar strengthens. While the US stock market Declined as investors were disappointed that the Fed had not given a clear signal about the likelihood of continued interest rate cuts.
During the market opening this morning The Buy Bulk SMS Service baht weakened to 30.90 while the dollar hit its strongest level in two years against a basket of major currencies. US stocks fell after the Fed offered no pledge to continue cutting interest rates. while the price of gold decreased As for the US bond yield curve Adjusted in a flat manner. After the meeting on 30-31 July, the Fed stated the impact from the uncertainty of the global economy. Conflict between the United States and its trading partners and low inflation Even though the US labor market and consumer spending Still going strong But the Fed noted the weakening of business expenditures.
In addition, the Fed will end the reduction in the size of its bond holdings two months earlier than before, on August 1. Krungsri's Global Markets Group views that the important issue in This time is an opinion from Mr. Jerome Powell, Chairman of the Fed, who views this interest rate cut as just a Mid-cycle Adjustment or policy adjustment in the middle of the cycle. This has caused the market to interpret this as not being the beginning of a long cycle of interest rate cuts. However, the Fed chairman also denied that this time the interest rate cut would be a one-time cut. We evaluate that The dollar will have a short period of support. And capital flows will be more volatile due to the Fed's latest take-and-take stance.
During the market opening this morning The Buy Bulk SMS Service baht weakened to 30.90 while the dollar hit its strongest level in two years against a basket of major currencies. US stocks fell after the Fed offered no pledge to continue cutting interest rates. while the price of gold decreased As for the US bond yield curve Adjusted in a flat manner. After the meeting on 30-31 July, the Fed stated the impact from the uncertainty of the global economy. Conflict between the United States and its trading partners and low inflation Even though the US labor market and consumer spending Still going strong But the Fed noted the weakening of business expenditures.
In addition, the Fed will end the reduction in the size of its bond holdings two months earlier than before, on August 1. Krungsri's Global Markets Group views that the important issue in This time is an opinion from Mr. Jerome Powell, Chairman of the Fed, who views this interest rate cut as just a Mid-cycle Adjustment or policy adjustment in the middle of the cycle. This has caused the market to interpret this as not being the beginning of a long cycle of interest rate cuts. However, the Fed chairman also denied that this time the interest rate cut would be a one-time cut. We evaluate that The dollar will have a short period of support. And capital flows will be more volatile due to the Fed's latest take-and-take stance.