Covid Matters Remain Front & Centre

Monday saw spot USD/MYR withstand the impact of crude palm oil's largest jump in 11 months, as Malaysia's Covid-19 matters took focus. The rate has eased off in early trade today and last sits at MYR4.1012, 38 pips worse off.

• Federal Territories Min Annuar said that several state gov'ts have asked central authorities to reimpose MCOs to arrest the spread of new Covid-19 infections. Annuar said that the gov't will study these requests before making decisions, while it sees targeted MCOs as an appropriate measure for several localisations across Kuala Lumpur.
• The detection of new coronavirus variants continues to provide a source of worry. 10 cases of the South African variant were detected in Kelantan, just a day after Malaysia declared the first patient infected with the Indian variant.
• Director-General of Health Noor Hisham said members of the public "have become fatigued, and therefore they are complacent in adhering to public health measures," adding that "the relaxation of rules, the reopening of the economic sector as well as borders, and also mass gatherings... these resulted in a surge in Covid-19 cases in many countries" (via Straits Times).
• Bank Negara Malaysia are expected to leave monetary policy settings unchanged when they deliver their monetary policy decision on Thursday.
• Data-wise, focus turns to industrial output/m'fing sales (Thursday) & foreign reserves (Friday).
• Bears need a fall through Apr 30 low of MYR4.0877 before targeting the 100-DMA, intersecting at MYR4.0773. Conversely, a rally through the 50-DMA at MYR4.1098 would open up the 200-DMA/Apr 21 high at MYR4.1184/4.1225.