• Brent Touches 2014 High
• MYR to fluctuate in the range of 4.1400 and 4.1550 against US dollar

Global Highlights

The dollar index climbed 0.14% to 93.949 following positive data released throughout the day. New home sales in the US soared 14% to 800K for the month of September, much higher than August’s 702K and the market forecast of 760K. Other than that, the US CB Consumer Confidence Index for October rose to 113.8, which is higher than the expected 108.3.

Equities stayed in the green when Dow Jones edged higher by 0.04% to 35,757 and S&P 500 rose 0.18% to 4,575. The UST 10- year yield benchmark fell 2.3bps to 1.608%% which marked the second consecutive day of falling yield. Gold pared its gains, dropping 0.82% to US$1,793/oz.

The euro slipped 0.10% to 1.160 paring gains it made over the last few weeks and following the rise of inflation expectations among bond investors above the ECB’s target to a new seven-year high of 2.07%.

The British pound remained steady at 1.377 after encouraging retail sales data. The CBI Distributive Trades survey reported that retail sales in the UK jumped to +30 in October, surpassing September’s +11 and expectations of +13. Investors will focus on the UK’s budget details that are scheduled to be announced today.

The Japanese yen weakened by 0.40% to 114.16. This is amidst the divergence of stances between the BoJ and other central banks and the surging crude oil prices.

In the meantime, the Chinese yuan strengthened by 0.04% to 6.383 following talks between US Treasury Secretary and Cina’s Vice Premier which sparked hopes of an improvement in trade ties.

Crude oil remained bullish as the Brent rose by 0.48% to US$86 per barrel, the highest since 2014, while WTI added 1.06% to US$84.7 per barrel.

Malaysia Highlights:

The ringgit retained its upper hand when it appreciated marginally by 0.08% to 4.146. It was traded at a high of 4.152 and low of 4.145.

The FBM KLCI fell 0.24% to 1,584. Detailed transactions indicated that local retailers were net buyers with RM64.8mil, offset by local institutions and foreign investors with RM51.9mil and RM12.8mil, respectively.

The IRS yield curve was mixed with the (3Y) -0.7bps to 2.668%, (7Y) -2.0nps to 3.220%, and (10Y) +2.0bps to 3.500%. The (5Y) remain stable at 2.945%.

Against major currencies, the ringgit was mixed as it appreciated against the EUR by 0.17% to 4.817, the JPY by 0.44% to 3.633, and the CNY by 0.05% to 1.540, but depreciated against the GBP by 0.06% to 5.719 and the AUD by 0.15% to 3.109. Regionally, the ringgit outperformed across the board. It strengthened vs. the SGD by 0.24% to 3.080, vs. the THB by 0.60% to 8.012, vs. the IDR 0.04% to 3,413, vs. the PHP by 0.14% to 12.238, and vs. the VND by 0.10% to 5,498.

MYR Outlook For The Day

We expect the MYR to trade between our support level of 4.1300 and 4.1400 while our resistance is pinned at 4.1550 and 4.1605.

Source: AmInvest Research - 27 Oct 2021