• Tensions between Western Bloc and Russia continue to simmer

Global Highlights

US dollar – The US Dollar Index gained by 0.25% to 95.043. In his latest speech, the Fed’s James Bullard pushed for a 1-percentage point hike as he believed inflation could be even higher if measures are not taken drastically.

US equities – The equity market was mixed, where the Dow Jones Industrial Average went down by 0.68% to 34,079, the Nasdaq dropped by 1.23% to 13,548 and the S&P 500 gained 1.58% to 4,471. The UST 10y declined 3.29 bps to 1.929.

Euro – The euro closed 0.46% stronger at 1.1359. The consumer confidence indicator in the Euro Area fell by 0.3 points from a month earlier to -8.8 in January 2022, the lowest level since last March.

British pound – The pound rose 0.07% to 1.3538. Retail sales in the United Kingdom increased 9.10% in January 2022 over the same month in the previous year.

Japanese yen – The yen gained 0.06% to 115.61. Japan's inflation receded to 0.5% y/y in January 2022, easing from a 0.8% y/y last month.

Chinese yuan – The yuan was weaker by 0.28% to 6.3393.

Korean won – The won firmed 0.13% to 1,195.60.

Australian dollar – The Aussie down 0.14% to 0.7177.

Commodities Highlights

Crude oil – The WTI closed lower at US$91.07 per barrel, and Brent was also at US$93.54 per barrel.

Gold - Gold remained at US$1,898/oz.

Malaysia Highlights

Malaysian Ringgit – The local currency slid by 0.04% to 4.1858.

KLSE – The FBM KLCI slid 0.12% to 1,603.

Fixed Income – The MGS yields were lower for shorter tenors, including the 3-year which was at 2.823%, 5-year at 3.311%, 7-year at 3.579%, and the 10-year at 3.694%.

Rates – The IRS yields for the 3Y was lower at 2.900%, 5Y lower at 3.180%, 7Y up at 3.378%, and 10Y increased by 1.5bps to 3.585%. KLIBOR remained at 1.970%.

Against major currencies – The ringgit was lower against the JPY, CNY, and IDR. The currency was higher against most currencies including the EUR, GBP, AUD, SGD, THB, PHP, VND.

Ringgit Outlook for the Day

We expect the MYR to trade between our support level of 4.1730 and 4.1770 while our resistance is pinned at 4.1950 and 4.1990.

Source: AmInvest Research - 21 Feb 2022