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Political Tensions Resurface

MYR

Spot USD/MYR has trimmed some of its initial losses and now trades -15 pips at MYR4.1825. The low of Jan 13 at MYR4.1720 provides the initial bearish target and a break here would open up Dec 31 low of MYR4.1642. Meanwhile, gains past Jan 27 high of MYR4.2070 would bring Jan 7 high of MYR4.2175 into play.

  • Relations between UMNO and Bersatu are growing increasingly tense, signalling escalating frictions within the ruling coalition. Former PMs Najib of UMNO and Muhyiddin of Bersatu publicly traded barbs over their contradictory statements regarding 2020 Sabah state election.
  • Malaysia's data docket for next week includes industrial output (Tuesday) as well as BoP current account balance and GDP (Friday).

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