Malaysian Defence Min Warns Against Costs Of Full Lockdown

Spot USD/MYR has slipped in early Asia-Pac trade amid fading prospects for a hard lockdown after the current Movement Control Order expires & in reaction to overnight greenback weakness.

• Malaysian Defence Min Ismail Sabri Yaakob pledged that the decision on restrictions after the MCO expires will be announced by Feb 4. He warned that a full lockdown could cost 2.8mn jobs and would affect the incomes of another 2.5mn workers. In addition, he noted that mandatory testing of foreign workers will be expanded nationwide.
• Malaysia's opposition leader Anwar took the suspension of parliament to the courts and seeks a judicial declaration that the suspension is unconstitutional and illegal.
• USD/MYR last sits -75 at MYR4.0402 and bears look for further losses past Jan 21 low of MYR4.0290. Such a move would bring Jan 4 low of MYR3.9957 into view. Conversely, a push through the 50-DMA at MYR4.0552 would expose Jan 12 high of MYR4.0760.
• Malaysia's latest trade data will grab attention on Friday.