USD/MYR now seen within 4.3670-4.4010 – UOB
The Malaysian ringgit is expected to trade between 4.3670 and 4.4010 vs. the US dollar in the next weeks, suggested Quek Ser Leang at UOB Group’s Global Economics & Markets Research.
Key Quotes
“We highlighted last Tuesday (17 May, spot at 4.3890) that ‘while there is still chance for USD/MYR to move above 4.4000, rapidly waning upward momentum suggests that a sustained rise above this major resistance is highly unlikely’.”
“Our view was not wrong as USD/MYR rose to 4.4050 before pulling back. Upward momentum has waned further and USD/MYR is unlikely to strengthen from here. For this week, USD/MYR is more likely to trade sideways between 4.3670 and 4.4010. Looking ahead, if USD/MYR breaks clearly below 4.3670, it could signal the start of a deeper pullback in the weeks ahead.”