The US Service sector is increasingly expansive, making the evaluation of FFR gains longer and pushing Wall Street to move in the weakening zone consistently. US service sector expansion, via ISM Services Index in Nov., rose to 56.5 (Vs. Surv. 53.5; Oct. 54.4), providing other evidence of the US economic recovery. This data complements last week’s data, where the labor market data remain solid, with a stronger wage growth amid the high inflation and interest rates era. US manufacturing data also showed improvement, with Factory Orders in Oct. growing by 1% (Vs. Sept. 0.3%) and Durable Goods Orders in Oct. growing by 1.1% (Vs. Sept. 1.0%). The improving US economic data has challenged the Fed’s hopes of slowing down the intensity of the FFR hike amid indications of lower CPI and PPI inflation.

Wait and See in awaiting Foreign Exchange Reserves (Cadev) data on Wednesday. Wall Street’s pressure earlier in the week, and the lack of sentiment in today’s economic data, caused NHKSI Research projects JCI to move sideways again. Investors began to focus on Indonesia’s Cadev in Nov. data, which will be released on Wednesday. The data is projected to be relatively preserved, in line with foreign inflows in the Government Securities market. Previously, Indonesia’s Cadev in Oct. was dropped to USD130.2 billion, along with the depreciation and wide volatility of the Rupiah exchange rate within the range of IDR15,200/USD – IDR15,600/USD in October. The Fed’s hopes of slowing the FFR hikes, making both Government Bonds (SUN) and Government Islamic Securities (SBSN) yields seem attractive, with FR91 and FR87 yields falling away from the psychological level of 7%.

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