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OCBC’s Christopher Wong notes that USD/IDR has pulled back as a softer Dollar and lower UST yields support the Indonesian Rupiah. He highlights Bank Indonesia Governor Destry Damayanti’s emphasis on a stability-first approach, prioritizing Rupiah and macro stability while still supporting growth. Wong sees near-term support for IDR but flags elevated Oil prices and high global yields as constraints.Stability-first stance supports Rupiah”Speaking at the Sarasehan 100 Ekonom Indonesia in Jakarta on Thursday, BI Governor Destry Damayanti reinforced the stability-first message she had set out earlier in the week, stressing that policy cannot be viewed solely through the domestic inflation lens…

Commerzbank says China’s August Services PMI rebound highlights some resilience in private-sector activity, but weak retail sales, soft inflation and higher unemployment still point to fragile domestic demand. The stronger PMI reduces the urgency for immediate PBoC easing, while leaving room for further support if growth weakens into year-end.Fragile demand keeps PBoC easing options open”China’s private services sector activity rebounded more strongly than expected in August, offering a bright spot in an otherwise subdued domestic demand picture. The RatingDog China Services PMI rose to 51.4 (Bloomberg consensus: 50.6) vs 50.4 in July.””The print marks a recovery from a near two-year…

The Pound Sterling (GBP) retreats some 0.09% against the US Dollar (USD) on Friday as the latest US inflation report reaffirmed Federal Reserve (Fed) Chair Kevin Warsh’s view that the labor market is “consistent with full employment.” GBP/USD trades near the open at 1.3512.GBP/USD slips as strong US jobs and Fed hawks support DollarThe US Nonfarm Payrolls in August exceeded the forecast of 56K, coming in at 162K and above July’s print of 21 K. The Unemployment Rate was unchanged at 4.1%. The data reassured Fed officials that if needed, they can raise rates without harming the labor market.Last week,…

DBS Group Research economist Chua Han Teng notes that Bank Negara Malaysia (BNM) held the Overnight Policy Rate at 2.75% while dropping language that the current level is appropriate. DBS expects rates to remain unchanged through 2026 but sees risks tilted towards a one-off policy normalisation.BNM holds but signals flexibility”Bank Negara Malaysia (BNM) maintained its Overnight Policy Rate (OPR) at 2.75% on September 3, extending its pause for a seventh consecutive decision.””We maintain our view for BNM to stay on hold for the remainder of 2026, given contained inflation amid a resilient economy, but see the balance of risk tilted…

OCBC’s Christopher Wong notes that strong foreign-currency inflows linked to the RBI’s special measures have bolstered the Indian Rupee (INR) and strengthened the central bank’s FX buffer. However, with the FCNR(B) window now closed, the exceptional near-term dollar supply is expected to fade, potentially leading to more two-way RBI management. Wong adds that USD/INR remains under bearish pressure, though oversold conditions may slow the pace of decline, with support at 94.30 and 94.15.RBI-backed inflows support INR, but near-term dollar supply may fade”USD/INR gapped down in the open yesterday. It was reported that RBI’s special measures attracted US$136.4bn of foreign-currency inflows,…

Nordea expects Eurozone inflation dynamics to stay persistent, with headline inflation projected above the ECB’s target at least until spring 2027. They see recent data as slightly weaker than the ECB’s June projections, partly due to soft food prices, but anticipate only modest downward revisions. Core inflation is projected to remain above 2% through 2028, supporting further ECB rate hikes.Inflation seen persistent and above target”Beyond energy, recent headline inflation data have come in slightly weaker than the ECB projected in June, partly because of weak food price inflation.””We therefore expect small downward revisions to the 2026 and 2027 headline inflation…

Silver (XAG/USD) trades around $66.20 at the time of writing on Friday, down 1.18% on the day, after recovering part of its sharp post-Nonfarm Payrolls (NFP) decline. The precious metal initially tumbled to an intraday low of $64.74 as stronger-than-expected United States (US) employment data boosted the US Dollar (USD) and Treasury yields, before buyers stepped back in as the initial market reaction faded.The US economy added 162K jobs in August, comfortably exceeding market expectations for an increase of 56K. July’s figure was revised to a gain of 21K from the previously reported decline of 23K, while June payroll growth…

DBS Group Research expects the European Central Bank (ECB) to raise the deposit facility rate to 2.50%, citing a resilient inflation-growth mix in the Eurozone. The report notes headline inflation has moved further above target, while core pressures remain contained for now. Source

The rupee settled for the day higher by 2 paise at 94.49 (provisional) against the US dollar on Friday, supported by optimism over rising foreign inflows and a rise in risk appetite.Forex traders said the rupee is set to strengthen due to robust foreign capital inflows and active RBI intervention.However, rising crude oil prices and escalating US-Iran geopolitical tensions may cap these upside gains.At the interbank foreign exchange market, the rupee opened at 94.53 and touched an intra-day high of 94.46 and a low of 94.53 during the session.At the end of Friday’s trading session, the rupee was quoted at…

The United States (US) Bureau of Labor Statistics (BLS) is set to release the Nonfarm Payrolls (NFP) data for August on Friday at 12:30 GMT. With investors leaning toward a Federal Reserve (Fed) interest rate hike in September amid persistent uncertainty surrounding the inflation outlook, the underlying details of the employment report could influence how markets assess the US central bank’s policy outlook and drive the US Dollar’s (USD) valuation. What to expect from the Nonfarm Payrolls report?Investors expect NFP to rise by 58K in August following July’s unexpected print of -23K. The Unemployment Rate is seen holding steady at 4.1%, while…