The Strong Dollar has pushed the US Trade Deficit more. Appreciation of the USD exchange rates as the FFR remains at a high level, making US manufactured goods less competitive in the global market. US exports fell 0.7% MoM to the lowest level in seven months. Export pressures might indicate that the Trade Deficit will weigh the US economy in 4Q22. On the other hand, the Strong Dollar increased the bargaining power of the USD towards other countries’ currencies, and US imports grew by 0.6%, MoM. Bloomberg data shows that US Trade in Oct. recorded a deficit of -USD78.2 billion (vs. Sept. -USD74.1 billion), or an increase of 5.5% MoM. Furthermore, the stocks on Wall Street are traded lower, with Nasdaq depreciating by up to 2%.

ICE Newcastle again broke through the psychological level of USD400/ton. Besides hoping China’s Zero-Covid Policy to ease, the rising in European gas prices have again pushed up coal commodity prices. The Energy Sector appreciated by 0.5%, the only sector to record gains yesterday. As for the Infrastructure and Basic Materials Sectors, both depreciated by more than 2%. This depreciation happened along with the weakening of the JCI, which fell 95 points to a level below 6,900. In awaiting the release of Foreign Exchange Reserves (Cadev) Indonesia data this morning, NHKSI Research projects that JCI has the opportunity to move in a minor-term bearish.

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