Ringgit Pulls Back After Palm Oil Rally Helps Push It To New Monthly High

USD/MYR has added 45 pips and last trades at MYR4.0490, after printing fresh Feb lows yesterday. Recovery is capped by the 50-DMA, intersecting at MYR4.0491. A clean break here would open up Feb 5 peak at MYR4.0767. Conversely, a retreat under Jan 29 low of MYR4.0285 would shift focus to Jan 4 cycle low of MYR3.9957.

• Palm oil prices continued to soar yesterday after KOJ1 charted a double bottom pattern. Participants assessed a solid increase in Malaysian exports of the commodity during Feb 1-10 (per Intertek Testing Services), which was interpreted as a signal of improving demand. The data came at the time when analysts were pointing to headwinds to production stemming from adverse weather conditions and staff shortages.
• Meanwhile, FinMin Zafrul said that the gov't will cap retail prices of gasoline and diesel amid a rally in crude oil prices and will launch a weekly subsidy allocation to cover the difference in prices.
• The Star cited an analytical note from Bank Islam Malaysia Bhd, which expects BNM to trim its main policy rate by 25bp at the next MonPol meeting.
• Bernama reported that Malaysia is in talks with Pfizer to boost its Covid-19 vaccine supply by 30%, which would allow to inoculate half of the country's population.
• The state of Selangor announced that it will help small scale entrepreneurs digitalise their business.
• All eyes are on Malaysia's Q4 GD report, coming up later today.