MYR: USD/MYR Rebounds Back Above 4.3200, MYR Erases May Gains
May-09 02:12
USD/MYR continues to rebound, the pair last around 4.3240, nearly 1.0% higher from end Thursday levels for the pair. We have risen quickly back through 4.3000, while the 20-day EMA resistance zone is coming into focus (around 4.3330). MYR has also erased all of its May to date gains, last down close to 0.20% for the month.
- Broader USD sentiment has certainty approved, with firmer US equities amid trade deal hopes, along with higher Tsy yields amid better data outcomes, also helping dollar sentiment. For MYR, the currency is the second worst performer after INR in May now.
- We had the BNM holding steady late yesterday, which was widely expected, but the reserve requirement was lowered to inject liquidity. The rough sell-side consensus remains for BNM easing this year (albeit to varying degrees). We did see the 1y1y (NDIRS) fall by around 5bps yesterday. This metric is at fresh lows back to late 2021 and may be acting as a MYR headwind.
- Palm oil prices have rebounded in recent dealings, but this is after hitting 8 month lows (down around 15% so far this year). This is a factor in Citi's lower terms of trade proxy for MYR, which is in negative territory as well, another MYR negative.
- Next week we get Q1 GDP and the current account balance on Friday.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
RBNZ SEES WEAKER OUTLOOK DUE TO GLOBAL TRADE POLICY
Apr-09 02:09
- RBNZ SEES WEAKER OUTLOOK DUE TO GLOBAL TRADE POLICY
RBNZ SEES NO SIGNS OF DYSFUNCTION IN FINANCIAL MARKETS
Apr-09 02:07
- RBNZ SEES NO SIGNS OF DYSFUNCTION IN FINANCIAL MARKETS
RBNZ: 25bp Cut As Expected, Tariffs Downside Risk To NZ Inflation
Apr-09 02:04
The RBNZ cut rates 25bp to 3.5% as expected and said that trade barriers weaken global growth outlook and are a downside risk for NZ inflation. More details to follow. See decision statement here.
