Malaysia Tightens Restrictions In Most Of Klang Valley

Spot USD/MYR has added 52 pips so far, on the back of a combination of Malaysia's decision to tighten Covid-19 rules and overnight USD dynamics. The rate last sits at MYR4.1640, with bulls looking for a break above Jun 24 high of MYR4.1710, before setting their sights on Nov 4, 2020 high of MYR4.1745. Bears need a retreat past Jun 25 low of MYR4.1423 to bring the 50-DMA at MYR4.1284 into play.

• Malaysia's Defence Min Ismail Sabri announced the implementation of stricter curbs on mobility (EMCO) in most of the Klang Valley. The decision to tighten restrictions in swathes of Selangor and some places across Kuala Lumpur came after these locations contributed more than half of Malaysia's daily Covid-19 infections. New virus counter-measures in the Klang Valley will take effect from Jul 3 through Jul 16.
• A senior Sabah leader said that the state should hold discussions with the federal gov't and adopt legislation, which would allow it to set its own Covid-19 policies.
• Looking ahead, all eyes are on next Thursday's monetary policy decision from Bank Negara Malaysia.