• Dollar dips on clouded consumer sentiment

• MYR to fluctuate in the range of 4.1576 and 4.1660 against US dollar

Global Highlights

The dollar index dipped 0.05% to close the week at 95.128 after data showed negative development in the University of Michigan’s consumer sentiment survey. The University of Michigan's consumer sentiment for the US fell to 66.8 in November from 71.7 in October and below market expectations of 72.4, preliminary estimates showed. It was the lowest reading since November 2011 due to the surging inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation.

Also, the number of job openings in the US fell by 191,000 from a month earlier to 10.4 million in September, compared with market expectations of 10.3 million but remaining well above pre-pandemic levels.

Equities rebounded as the Dow Jones rose 0.50% to 36,100 while the S&P500 increased 0.72% to 4,683. The UST 10-year yield benchmark climbed 1.2bps to 1.561%%. Gold dipped 0.15% to US$1,865/oz after it surged last late last week.

The Euro extended its losses as it fell 0.05% to 1.145. Among local data, industrial production In the Eurozone increased 5.2% in September y/y, higher than 4.9% growth in the previous month and above market forecasts of 4.1%.

Conversely, the British pound added 0.31% to 1.341. Investors and traders are monitoring a potential of new conflict on the post-Brexit trade deal between the Ireland and British government relating to the measures under Article 16.

The Japanese yen strengthened 0.15% to 113.89.

Meanwhile, the Chinese Yuan Strengthened as Well by 0.18% to 6.380.

Crude oil was on the red on the uncertainties that President Joe Biden's administration might release oil from the reserve to push down prices. Brent fell 0.84% to uS$82.2 per barrel while the WTI lost 0.98% to US$80.8 per barrel.

Malaysia Highlights:

The ringgit strengthened 0.12% to 4.166 and was traded with high of 4.1685 and low of 4.1635.

The FBM KLCI rebounded after multiple sessions of declining. It climbed 0.81% to 1,531. Detailed transactions showed that the local institutions were the net sellers with RM189.9mil position, while the retailers and foreign investors were the net buyers with RM12.5mil and RM177.4mil.

Over to the local bond market, the 3-years -2.0bps to 2.660%, 5-years -2.0bps to 3.150%, 7-years -2.5bps to 3.440%, while the 10-years +2.0bps to 3.570%.

The IRS yield curve steepened when (3Y) -1.5bps to 2.745%, (5Y) -4.0bps to 2.935%, (7Y) +1.2bps to 3.212%. The (10Y) remained stable at 3.380%.

Against major currencies, the ringgit strengthened against EUR by 0.32% to 4.766, GBP by 0.01% to 5.582, and AUD by 0.16% to 3.038 but weakened against CNY by 0.03% to 1.532. The ringgit remained stable at 3.656 against JPY. Regionally, ringgit was mixed against its Asean peers. It depreciated; vs. SGD by 0.10% to 3.078, vs. IDR by 0.29% to 3,414, vs. PHP by 0.48% to 11.976, but appreciated; vs. THB by 0.03% to 7.875, and vs. VND by 0.10% to 5,438.

MYR Outlook For The Day

We expect the MYR to trade between our support level of 4.1513 and 4.1576 while our resistance is pinned at 4.1660 and 4.1735.

Source: AmInvest Research - 15 Nov 2021