▪ MYR appreciated against the USD last week as the government announced an additional economic stimulus worth RM10b (0.7% of GDP) for SMEs, while further amplified by the optimism of OPEC+ production cut and a weakening USD.
▪ MYR is set to endure another week of market volatility as the market sees OPEC+ deal to cut production by 10m barrels perday in May and June is insufficientamid low global demand. However, the deal may provide some support to oil prices from further downside, subsequently supporting the stability of MYR.
▪ EMA reveals weakening bias for MYR this week as last week’s upside momentum ebbs. It is expected to depreciate by 0.55% to 4.333 against USD from its closing price of 4.310 last Friday.
▪ The short-term view has cast a weakening bias for MYR with a strong resistance at (R1) 4.345 and minor supportat(S1) 4.292for the USDMYR. Alternatively, the ringgit may be due for anupswing should the pair break through the (S2) 4.275 support level, provided crude oil price breach and maintain above USD40/barrel.
Source: Kenanga Research - 13 Apr 2020
Created by kiasutrader | Aug 26, 2024