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.