Ringgit Steady With Domestic Politics Drawing Attention Again

Spot USD/MYR bounced off its worst levels in nearly four weeks Tuesday amid broad-based greenback purchases. The rate consolidates those gains, last trading at MYR4.3780, barely changed on the day.

• Technical focus falls on MYR4.4012/4.4085, which capped gains on May 26/19 (the latter marks a recent cycle high). On the flip side, bears need a retreat under yesterday's low of MYR4.3643, before targeting May 5 low of MYR4.3337.
• The issue of the potential replacement of Commodities Minister Zuraida Kamaruddin is resurfacing again, as UMNO's Tajudin said PM Ismail Sabri "has to think what is best for the country." There have been chatter coming from some quarters within UMNO that the Premier does not have to nominate a new Minister from Bersatu, after Zuraida left ex-PM Muhyiddin's party.
• Elsewhere, Tajudin said that "only the Cabinet can dissolve Parliament" and it's not up to the ruling party. Earlier on Tuesday, PM Ismail Sabri told the Nikkei that now is not the right time to call a snap election.
• Note that the UMNO-led Barisan Nasional alliance holds its convention today. The Premier said that the event will witness consensus and solidarity of parties, but worth staying on the lookout for any signs of tensions re: the snap election idea (we covered the whole issue extensively in our bullets).
• Malaysia's May S&P Global M'fing PMI will be published shortly.