Daily Forex Report

MUFG Bank, Jakarta Branch FOREX DAILY REPORT Friday, Dec 6, 2019

Major Currencies

Market awaits development in trade talks and Non Farm Payroll data for the US tonight. A figure of 185 thousand is expected, higher than 128 thousand jobs created in October.

China said it will waive import tariffs for some soybeans and pork shipment from the United States. This decision actually benefits both parties as high pork prices have contributed to China’s inflation this year. Tariff rollbacks from the US is a stickier subject and Chinese rhetoric still seems firmly on the ground that this is not a negotiable issue.

Saudi Arabia and Russia will seek approval for OPEC+ members to cut an additional 500,000 barrels per day for the first quarter of 2020.The average for the West Texas Intermediate for the past year has been at US$56 per barrel the past year, with a low of US$45 in Dec 2018 and a high of US$64 in April 2019.


A thin market on NFP day supported IDR to continue yesterday’s strengthening move. Good support for the USD/IDR then was found at 14,030 which is the level in early November. The USD/IDR pair has not firmly breached below 14,000 since July 2019.

Foreign reserves were unchanged at US$126.6 billion end of November. This is equivalent to 7.5 times monthly imports or 7.2 times monthly imports and servicing the government foreign debt.

President Joko Widodo has signed a regulation to order officials to streamline business approval rules this is essential to alleviate the many structural issues challenging Indonesia. However it remains to be seen if any positive change can be seen by 2020.


Closing market on 6 Dec 2019                       Jakarta market at 04.00 pm on 6 Dec 2019

Nikkei              : 23,354.40 (+0.23%)              USD/JPY        : 108.58/ 108.60

ID 10Y yield    : 7.072      (- 1 bps)                  EUR/USD       : 1.1105/1.1108

JCI                  : 6,186.87   (+0.56%)              USD/IDR         : 14,040


Closing market on 5 Dec 2019                                                        

DJI                  : 27,677.79  (+0.10%)

US10Y yield    : 1.811         (+4 bps) 



Alia Fatmawati, Amanda Kinantya, Amelia Damayanti, Arfilia Amanda,
Argo Aji Nugroho, Caroline Pandea, Dicky A Abdurrahman, Dimas Satya M., Elvinawaty, Evi Nurul Arafah, Kristian Yusak Djumali, Mirawati Pranoto, Muhammad Fajrin, Natasya Ihza, Palmella Putri, Ronal Murni, Rudy Sugiharto, Topik Hidayat, Victoria Wikan, Ririn Virgiyanthi, Palmella Putri.
The above information is elaborated from reliable sources and presented without any responsibility of MUFG Bank, Ltd-Jakarta branch





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