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USD/MYR has eased off as we wait for.....>

DOLLAR-MYR: USD/MYR has eased off as we wait for interim PM Mahathir to unveil a
stimulus package, which he will do at 15:00 local time, per Malaysian FinMin.
Speculation that Mahathir might return as PM probably helps the ringgit as well.
- At 11:00 Mahathir arrived at the royal palace, summoned by the King who
interviewed virtually all lawmakers over the last few days in an attempt to
facilitate the formation of new gov't. It is unclear whether the monarch will
entrust Mahathir with the task of forming a gov't. Yet, it is worth noting that
asking the caretaker PM to resign just hours before he announces a stimulus
package doesn't seem to be a likely outcome to many watchers.
- USD/MYR trades -45 pips at MYR4.2210. Bears took note of a bearish Harami
candlestick pattern completed yesterday (albeit purists would point to a long
upper shadow exceeding the prior high). Momentum studies lend support to hopes
for a market top, as they suggest that the rate is overbought. A drop below the
Feb 24 high at MYR4.2000 would fuel the downside impetus. Meanwhile, a fresh
cycle high of MYR4.2435 printed yesterday remains in sight, with a series of
highs from Oct-Nov 2017 in the MYR4.2437-40 area layered just above there.

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