Global: The dollar fell 0.02% to 99.118. The dollar regained strength as optimism on a US-China trade deal was short-lived following headlines that China were lowering expectations for progress in tonight’s talks.

Also, FOMC minutes showed that most Fed members see the 25bps warranted and acknowledged the trade tension risk towards the economy. The Dow and S&P500 rose 0.70% to 26,346 and 0.91% to 2,919, respectively. The UST10-year jumped 5.5bps to 1.584% while gold prices were unchanged at US$1,505.6/oz.

The euro rose 0.13% to 1.097while the pound slid 0.11% at 1.221 after reports that the EU was open to granting lawmakers in Northern Ireland the opportunity to leave any potential backstop arrangement within a few years was rejected by Northern Ireland’s Democratic Unionist Party. The yen fell 0.36% to 107.5 against the USD while the yuan rose 0.16% to 7.133.

Malaysia: The MYR fell 0.11% to 4.197. The KLCI ended 0.48% down at 1,551.2, near its 4-year low. Activities in the MGS market were subdued; the 7-year yield added 0.5bps to 3.355% and the 10-year yield eased 1.5bps at 3.390%. The 3- and 5-year yields were unchanged at 3.125% and 3.245%, respectively.

Buoyed by Turkey’s military action in Syria, crude commodity prices were mixed with Brent up 0.14% to US$58.32/bbl while the WTI lost 0.08% to US$52.59/bbl. Gains were as limited as EIA crude oil inventories for week ending 4 Oct were larger-than-expected at 2.9mil barrel (cons: 1.4mil).

Against the major currencies, the MYR rose 0.012% to 5.137 vs the GBP and 0.26% to 3.904 vs. the JPY. It fell 0.07% at 4.610 vs. the EUR and 0.27% at 1.700 vs. the CNY. Regionally, the MYR weakened mostly; (SGD) 0.04% at 3.039, (THB) 0.30% at 7.230, (IDR) 0.03% at 3,377.2, (PHP) 0.07% to 12.34 and (VND) 0.11% at 5,528.7.

MYR outlook: We expect MYR to trade between our support level of 4.1851 and 4.1896 while our resistance is pinned at 4.2007 and 4.2042.

Source: AmInvest Research - 10 Oct 2019