Politics At The Forefront, Covid Cases Hit Record

Spot USD/MYR has added 40 pips so far and last trades at MYR4.2245, sticking to yesterday's range, with all eyes on Malaysia's political turmoil and Covid-19 situation. Bulls look for a move through Jul 29 high of MYR4.2405 towards Jul 21 high of MYR4.2440, while bears keep an eye on Jul 30 low of MYR4.2188, followed by Jul 15 low of MYR4.1955.

• A tug of war between PM Muhyiddin and UMNO Pres Zahid stole the limelight yesterday, with the two seen at odds as to whether Muhyiddin government still has the backing of majority of lawmakers. Muhyiddin emerged from an audience with the King noting that he will prove his point by triggering a vote of confidence when parliament reconvenes in September, while Zahid and other opposition leaders challenged him to reopen the legislature and proceed with the vote immediately.
• UMNO sources told Malay Mail that the Zahid faction can currently count on 11 MPs to defect from Muhyiddin, but one source said that the number is subject to some "fluidity".
• As the country was caught up with political headlines, Malaysia reported another daily record (19,819) in new Covid-19 cases Wednesday.