MALAYSIA: Country Wrap: OECD Suggests Reforms Needed
- The new US tariffs on imported steel and aluminum, set at 50%, that took effect this week are a “serious threat” to Malaysia’s steel producers, an industry group told The Edge Malaysia. Downstream metal producers, which process raw metal into goods, will be “significantly impacted” by the new rate, Roshan Abdullah, president of the Malaysian Iron and Steel Industry Federation (source The Edge)
The Organization for Economic Co-operation and Development (OECD) has urged Malaysia to implement further measures to enhance its economic competitiveness and strengthen its resilience. Speaking during a virtual conference on the OECD Economic Outlook on Wednesday, the organization's head of division for Southeast Asia, Jens Arnold, said Malaysia should consider additional reforms to bolster its resilience amid ongoing global uncertainties. (source The Edge)
- Having rallied yesterday to break six straight days of losses, the FSE Malaysia KLCI is up +0.40% today.
- The ringgit was marginally better today with gains of just +0.06% to be 4.2435
- Bonds were softer with yields higher by up to 2bps. MGS 10YR 3.55%
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Historical bullets
EURGBP TECHS: Trading Closer To Its Recent Lows
- RES 4: 0.8781 2.236 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8768 High Nov 20 ‘23
- RES 2: 0.8624/0.8738 High Apr 21/ High Apr 11 and the bull trigger
- RES 1: 0.8557 High Apr 28
- PRICE: 0.8514 @ 06:13 BST May 6
- SUP 1: 0.8480 Low May 1
- SUP 2: 0.8477/67 61.8% of the Mar 28 - Apr 11 rally / 50-day EMA
- SUP 3: 0.8415 76.4% retracement of the Mar 28 - Apr 11 rally
- SUP 4: 0.8316 Low Mar 28 and a key support
EURGBP is trading closer to its recent lows and a short-term bear cycle remains in play, for now. The next support to watch is 0.8477, a Fibonacci retracement point where a break would strengthen a bearish theme. Support at the 50-day EMA, lies at 0.8467. It is still possible the move down that started Apr 11, is a correction. A clear reversal would open 0.8738, the Apr 11 high and bull trigger. First key resistance is 0.8624, the Apr 21 high.
GBPUSD TECHS: Corrective Cycle
- RES 4: 1.3605 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 3: 1.3550 High Feb 24 ‘22
- RES 2: 1.3510 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3444 High Apr 28 / 29
- PRICE: 1.3302 @ 06:06 BST May 6
- SUP 1: 1.3257 Low May 5
- SUP 2: 1.3232 20-day EMA
- SUP 3: 1.3041/3045 Low Apr 14 / 50-day EMA
- SUP 4: 1.2968 Low Apr 11
The latest pullback in GBPUSD appears corrective. A tweezer top formation on the daily candle chart last Monday/Tuesday, highlights a short-term top. Firm support at 1.3232, the 20-day EMA, remains intact. A break of this level would signal scope for a deeper retracement. Note that moving average studies are in a bull-mode position, signalling a dominant underlying uptrend. A resumption of gains would open 1.3510, a Fibonacci projection.
BOBL TECHS: (M5) Pierces The 20-Day EMA
- RES 4: 120.20 High Dec 12 ‘24 (cont)
- RES 3: 120.000 Psychological round number
- RES 2: 119.960 High Apr 7 and the bull trigger
- RES 1: 119.780 High Apr 22
- PRICE: 119.150 @ 05:32 BST May 6
- SUP 1: 119.010 Low May 5
- SUP 2: 118.647 50-day EMA
- SUP 3: 118.060 Low Apr 10
- SUP 4: 117.680 Low Apr 9 and a key support
A bull cycle in Bobl futures remains in play and the recent steep sell-off between Apr 7 - 9 is considered corrective. Gains in early April rally resulted in a break of key resistance at 119.040, the Feb 28 high, strengthening bullish conditions. Sights are on the 120.000 handle next. On the downside, firm support lies at 117.680, the Apr 9 low. The 20-day EMA, an important S/T support, at 119.088, has been pierced. The 50-day EMA is at 118.647.
