Muhyiddin Reluctant To Bring Forward Confidence Vote, GDP Data Eyed

Spot USD/MYR has added 45 pips thus far and last operates at MYR4.2360, trapped within the confines of yesterday's range, with Malaysian politics still at the forefront amid another record surge in new Covid-19 cases reported Thursday.

• Bulls look for a rally above Jul 21 high of MYR4.2440, before taking aim at the 61.8% retracement of the 2020 sell-off at MYR4.2758. Bears would be pleased by a slide through Aug 5 low of MYR4.2105, towards Jul 15 low of MYR4.1955.
• It seems PM Muhyiddin will stick to his original plan to table a confidence motion in September. Straits Times sources revealed that Muhyiddin's Bersatu party judged that bringing the vote forward would be a sign of weakness and undermine their negotiations with MPs for support. Communications Minister Saidifuddin confirmed that "the vote of confidence (...) has been scheduled for Sep 7". Separately, Malaysiakini reported that the Royal Palace has sent a letter to Dewan Rakyat (lower house) Speaker, requesting confirmation of the number of lawmakers who still back the Premier.
• Malaysia's Q2 GDP report steals the limelight today. Bloomberg median estimate suggests that the economy grew 13.9% Y/Y in the three months through June, but shrank 1.9% on a quarterly basis.