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New YtD Peak For USD/MYR, World Bank Downgrades Malaysia's Growth Forecast

MYR

Spot USD/MYR went bid Wednesday, rallying to a new YtD peak. The rate has crept higher as trading resumed in Kuala Lumpur this morning and last sits +45 pips at MYR4.1665.

  • Should the rate punch through Nov 4, 2020 high of MYR4.1745, bulls could target Sep 28, 2020 high of MYR4.1768. Bears need a pullback under the 50-DMA at MYR4.1255 to get some relief.
  • The World Bank downgraded Malaysia's GDP growth forecast to +4.5% Y/Y from +6.0% Y/Y, owing to the rise in new Covid-19 cases and high hospital bed occupancy rate. Separately, Malaysia's Econ Min Mohamed said that the gov't expects a strong economic recovery in 4Q2021.
  • While PM Muhyiddin faces recurring calls to reopen the parliament, nine out of thirteen Malaysian state legislatures have made plans to reconvene in the coming months. Meanwhile, UMNO Vice-Pres & Defence Min Ismael Sabri said that MPs from the UMNO-led Barisan Nasional will not back a motion of no confidence against PM Muhyiddin.
  • Malaysia's monthly CPI report will hit the wires on Friday.

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