JAKARTA (TheInsiderStories) – Good Morning! The main events of the week ahead will be central bank meetings in the United States (US), Indonesia, United Kingdom (UK), Australia, and Japan, which are accompanied by some key indicator releases, most notably including industrial production and retail sales data for the two largest world economy.
The Federal Reserve meets on Wednesday overshadowed by a growing signs that the US economy is set for bumper growth in 2021, as well as a rise in inflationary pressures. Its a similar situation in the UK, where the Bank of England likewise convenes to set monetary policy on Thursday, albeit with somewhat greater uncertainty over the growth outlook for the coming year.
Many UK forecasters remain wary of upping their predictions for growth due to both COVID-19 and Brexit. Both central bank meetings will nevertheless be watched closely for any signs that the improving outlooks, and recent upward pressures on bond yields, could potentially lead to policy accommodation being tapered earlier than previously signaled.
Then, Eurozone and Canada inflation data will release on Thursday. In Asia, Japan markets have been speculating that recent bond yield gyrations could cause the Bank of Japan to tweak its asset purchase program. In particular, the bank could widen the bands of its yield curve control when it announces the findings of its policy framework review at its upcoming monetary meeting.
The bank has meanwhile stressed the need for long-term rates to remain low to bolster the COVID-19 economic recovery.However, its China’ monthly data dump that will set the scene for the week. Industrial production, retail sales, investment, house price and unemployment data are all released on Monday to cover the January to February period, encompassing the holidays.
While the latest export data showed trade surging, PMI numbers have indicated a slowing in the pace of economic growth amid COVID-19 restrictions and logistics delays. Elsewhere in Asia, trade, inflation, manufacturing output and service sector data are issued in Japan, with trade numbers likewise updated for India and Indonesia.
Last week, Indonesian Rupiah closed up 0.14 percent to 14,385 versus the US Dollar and the Jakarta Composite Index (JCI) jumped 1.49 percent to 6.358,20 from a previous day. The analysts rated, with these various information, both is predicted to move flat ahead of the Federal Reserve meeting and the release of a number of economic data.
One of the sentiments that will affect the movement of the local currency is the higher demand for the Greenback to the end of first quarter of 2021. This week, the Rupiah its expecting move in the range of 14,250 – 14,450 and the JCI between 6,300 – 6,450.
Stocks to be watch for today are PT Bank Mandiri Tbk (IDX: BMRI), PT Bukit Asam Tbk (IDX: PTBA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Astra International Tbk (IDX: ASII), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), and PT Telkom Indonesia Tbk (IDX: TLKM).
-IHS Markit contributed to this briefing
May you have a profitable Week!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia