Week Ahead for FX, Bonds: U.S. Jobs Data in Focus -2-

Market focus next week will be on U.S. jobs data and the pricing of inflation and policy expectations, with economists looking at how that translates into FX and bond moves. In Indonesia, attention turns to August trade and September inflation figures released Thursday. A Citi estimate puts Indonesia’s September trade surplus at $42.70 billion, up from a revised $34.79 billion in the prior month. Citi expects headline inflation around 3.0% in September versus 3.1% in August, still above Bank Indonesia’s 2.0% target. ANZ’s Jennifer Kusuma expects CPI to edge to 3.3% from 3.2%, with inflation seen staying inside BI’s band, potentially keeping BI focused on exchange-rate stability.