All three Wall Street Indices closed higher on Thursday due to US Inflation data that fell for the first time since May 2020, bolstering optimism that the Federal Reserve will downshift to a smaller rate hike at next month’s FOMC Meeting, which is 0.25% (probability 92%). CPI fell by 0.1% in December 2022, contrasting with economists’ forecast of no change. This deflation took the annual CPI down to 6.5% YoY from 7.1% in November. Core inflation (which excludes volatile food & energy prices) still rose 0.3%, as expected. Core services, excluding housing, a key component that Fed Chairman Jerome Powell pays close attention to, recorded at 0.25%, below the annual average forecast of 0.5%.

JCI finally managed to rebound from the critical Support area around 6550, closing yesterday’s trade at 6629.9. NHKSI RESEARCH is optimistic that JCI will be able to continue its strengthening at the end of this week towards MA10 Resistance in the 6720-6730 area, or even towards MA20 around 6770-6780, supported by regional market sentiment, weakening US CPI, and strengthening Rupiah exchange rate at IDR15337/USD. .

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