▪ Ringgitadvanced againstUSDas the government and Bank Negara Malaysia (BNM) have taken bold steps to mitigate the coronavirus’s impact on the economy. In addition, USD weakened as investors shifted towards emerging currencies after US senate passes USD2.0t stimulus spending bill, boosting risk appetite.
▪ As the USD weakens, the Brent crude oil price is predicted to rise, prompting ringgit to strengthen against USD despite the extension of Malaysia Movement Control Order. BNM’s proactive action coupled with the additional economic stimulus package is expected to support and move the MYR higher against USD.
▪ EMA, however, suggests a reversal with USD to regain its uptrend momentum this week, appreciating by 0.61% against the local note from its closing price of 4.337 last Friday.
▪ The technical outlook for this week shifts towards a bullish USD with a potential resistance at (R1) 4.412, followed by (R2) 4.487. A downward bias appears at (S1) 4.297, while a break below (S2) 4.256 could reinstate an upward trajectory for MYR.
Source: Kenanga Research - 30 Mar 2020
Created by kiasutrader | Aug 26, 2024