USD/IDR Forwards May Eye 50-DMA If CPI Misses Estimate: Analysis
Source: BFW (Bloomberg First Word)
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UUID: 7947283
(Bloomberg) -- A lower-than-forecast reading for Indonesia’s Sept. CPI could spur a rally in USD/IDR 1-mo. NDF, as this could provide more backing for further BI rate cuts, Bloomberg strategist Andrew Robinson writes.
Alert: HALISTER1- Consumer prices probably rebounded in Sept. from a more than six-year low of 2.79% seen in Aug., a Bloomberg survey shows; median est. is 3.04%, vs range of ests. from 2.60% to 3.30%; data due on Oct. 3
- BI is likely to lower its benchmark rate by 25 bps by end-4Q, another survey shows
- 1-mo. NDF could rise to 50-DMA which is now at 13,181; NDF hasn’t traded above this moving average since Sept. 21
- Slow stochastics are giving a bullish signal, with %K line crossing above %D line to 29
- USD/IDR 1-mo. NDF up 0.1% at 13,045 today; it touched 12,914 on Sept. 27, lowest since April 2015
- NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
Source: BFW (Bloomberg First Word)
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UUID: 7947283