Ringgit Gains Amid Improving Covid Situation, Countdown To Melaka Poll

Spot USD/MYR has gone offered and last sits at MYR4.1538, 50 pips lower on the day. The rate has reversed last Friday's gains and bears now look for a break below Oct 29 trough/200-DMA at MYR4.1392/89. The next layer of support below is provided by Sep 10 low of MYR4.1300. On the topside, a move through the 50-DMA at MYR4.1659 would shift focus to Oct 18 high of MYR4.1720.

• Campaigning for the Melaka state election kicks off today, with three major political alliances Barisan Nasional, Pakatan Harapan and Perikatan Nasional setting their sights on taking control of the state. All 28 seats will be contested by the three coalitions, with voters set to cast their ballots on Nov 20.
• The states of Penang, Sabah, Perlis, Perak and Kedah are moving to the final phase of the National Recovery Plan today. Furthermore, the government ditched a mandatory MYR2.600 charge on inbound foreign travellers.
• Malaysia added just 4,343 new Covid-19 infections on Sunday, the fewest since May.
• On the data front, focus turns to industrial output (Tuesday) as well as GDP & BoP current account balance (Friday).