Cabinet Rallies Behind Muhyiddin, Shows Optimism About Reopening

Spot USD/MYR has eased in early trade, after a poor showing from the greenback overnight. The rate last trades -35 pips at MYR4.1980, with bearish sights set on Jul 12 low of MYR4.1810, followed by Jul 6 low of MYR4.1480. Bulls need to force a breach above Jul 14 high of MYR4.2038, before targeting Aug 11, 2020 high of MYR4.2065.

• All cabinet ministers (including all 9 nominated by UMNO) rallied behind PM Muhyiddin, dealing a blow to UMNO Pres Zahid's attempts to unseat the Premier. Cabinet members emphasised the need to prioritise the success of the National Recovery Plan.
• Dep PM Ismail Sabri struck an optimistic note on reopening the country, as he suggested that a faster rate of vaccinations should allow more states to move into Phase Two of the National Recovery Plan. The whole country is expected to move into Phase Two in early August.
• FinMin Zafrul said that states which moved into Phase Two will not be able to return into Phase One, as it would be unsustainable for the country to "open and close." Any flare-ups in cases will be contained by targeted restrictions in specific localities.
• Malaysia recorded 11,618 new infections on Wednesday, setting a second straight daily record. Selangor was the top contributor of new cases, followed by Kuala Lumpur and Negeri Sembilan.