Ringgit Trades Sideways, Malaysia Scraps Some Cooking Oil Subsidies

Spot USD/MYR is trapped within a narrow range, last deals +35 pips at MYR4.4000. Bulls would see a break above Jun 14 high of MYR4.4255 as evidence that the topside trend is intact. The next target above is provided by MYR4.4490, which capped gains on Mar 23, 2020. On the flip side, a retreat under May 31 low of MYR4.3643 would suggest that a bearish reversal might be gathering steam.

• Malaysia will ditch price controls on poultry and remove subsidies for certain cooking oil products from July 1 to stabilise domestic supply and prices, after the measures "have caused market and price distortions."
• Bersatu's Muhyiddin said he was still waiting to meet with PM Ismail Sabri to discuss the replacement of Commodities Minister Zuraida after she left his party. The uncertain future of Zuraida's membership in the Cabinet is exacerbating tensions within Malaysia's uneasy ruling coalition.
• Looking ahead, Malaysia's CPI data will hit the wires on Friday. Analysts expect headline inflation to have accelerated to +2.6% Y/Y in May from +2.3% recorded in April, according to a Bloomberg survey.