Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Trump Defends Economic Record in North Carolina as Midterm Election Pressure Mounts 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Current account deficit of Indonesia narrowed during the third quarter of this year, matching the lowest level seen since the second quarter of 2012. Further, the recovery in rupiah volatility has also grabbed a considerable amount of attention.
Current account (C/A) deficit narrowed to 1.8 percent of GDP in 3Q16. This matches the lowest amount of C/A deficit seen since 2Q12 (C/A deficit was also at 1.8 percent of GDP in 3Q15). The merchandise trade data is likely to continue recording positive monthly balances till the year-end (Oct trade data due on Tuesday), making it all but certain that C/A deficit will come in around 2 percent of GDP this year, DBS reported.
However, the 3Q16 balance of payments (BoP) data showed net foreign direct investment (FDI) surging to 2.1 percent of GDP in the period. This means that net FDI can finance the entire amount of C/A deficit, for the first time since 2011.
Back in mid-2013, Indonesia’s C/A deficit at 3.5 percent of GDP was unsustainable as only half of it was covered by net FDI. When the taper tantrums erupted then, Indonesia was among the worst hit economies.
