THAILAND: Finance Minister Expects Tariff Rate To Be Reduced After Trade Talks
Jul-18 08:47
- Finance Minister Pichai Chunhavajira said earlier today that he expects the US to reduce the threatened tariff rate from 36% to something in line with regional peers, not more than 20%. Vietnam, for example, is facing a 20% tariff and Indonesia 19%.
- Chunhavajira was speaking after a fresh round of trade talks with the US, where the government presented what he called a very substantially improved offer, in line with US demands.
- Thailand’s latest proposal widens a list of products that will be subject to zero tariffs to 90% of all items, up from nearer 60% previously. The government also offered to significantly increase purchases of US goods, including agricultural products, LNG and Boeing aircraft.
- Speaking separately, Chanintr Chalisarapong, vice chairman of the Thai Chamber of Commerce, said that he expected the final tariff on Thailand to be set in a 18-20% range. He said he was confident that a deal could be secured before Aug 1.
- Against this backdrop, the Thai baht has outperformed peers today, with USDTHB 0.5% lower on the session around 32.37, just above recent 10-month lows. The SET has also risen by 0.7%, taking the weekly gain to over 7.5%. Equity inflows have had a better run this week, with yesterday's inflow the strongest since late June, aided also by the prospect of a more dovish BoT.
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EURIBOR OPTIONS: Call Condor vs Put
Jun-18 08:43
ERH6 98.0625/98.1875/98.50/98.625c condor vs 97.875p, bought the condor for half in 2.5k.
CROSS ASSET: The USD is paring small losses
Jun-18 08:35
- A small bid in the Dollar is going through, testing session high against the INR, SEK, PHP, and paring some small losses versus the EUR, GBP, AUD and NZD.
- Multi cross assets are seeing two way price action, and are mostly in a holding pattern as the Globe awaits on the Fed.
- European Equity futures are seeing some selling, but as expected the Rolls dominates on both side of the Pond given that Tomorrow is Juneteenth, so the liquidity in the June Expiry could be set to diminish.
FOREX: FX OPTION EXPIRY
Jun-18 08:28
Of note:
EURUSD 2.86bn at 1.1500 (could act as Magnet).
USCAD 1.79bn at 1.3600 (a little far).
EURUSD 5.52bn at 1.1545/1.1600 (thu).
USDJPY 1.92bn at 146.00 (fri).
- EURUSD: 1.1450 (645mln), 1.1455 (292mln), 1.1460 (596mln), 1.1490 (339mln), 1.1500 (2.86bn), 1.1525 (462mln).
- USDCAD: 1.3600 (1.79bn), 1.3700 (481mln).
- USDZAR: 18.0000 (240mln).
- EURSEK: 11.1500 (409mln).
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