Quotes from Societe Generale Cross Asset Research:
-In emerging markets, the Central Bank of Indonesia (BI) yesterday surprised with a 25bp rate cut to 7.50%. The BI now foresees inflation heading towards the lower end of its 3%-5% target range, which probably signals that further easing may be on the cards.
-In our view, the one-month NDF for USD/IDR is set to break the 13,000 barrier very soon. Data today is forecast to show that South African inflation slowed to 4.5% yoy in January from 5.3% in December and that retail sales grew by 2.5% yoy.
-The FOMC minutes tonight should keep ZAR buyers sidelined, and we think that the downtrend in USD/ZAR from the 11.89 high is temporary.
