USD/MYR shot higher at the open,.........>

DOLLAR-MYR: USD/MYR shot higher at the open, creeping higher still as selling

pressure hit EMFX. The initial impetus has been provided by well-documented

developments surrounding the coronavirus situation, which roiled risk appetite.

Long story short, G20 FinMins acknowledged economic risk posed by the epidemic,

the no. of confirmed cases in Italy & South Korea soared, while China's Hubei

warned that Covid-19's incubation period may be longer than we thought. 

- Another source of pressure on the ringgit can be found at home. Malaysia got

mired in a political crisis as PM Mahathir's supporters have initiated talks

aiming at excluding Anwar Ibrahim from a future government. Anwar was Mahathir's

designated successor as part of a political deal, which stipulated that the

nonagenarian PM will relinquish power to his rival-turned-ally. The Straits

Times earlier reported that Mahathir & Anwar were supposed to meet this morning.

- USD/MYR sits at MYR4.2215, +300 pips on the day & hitting best levels since

September. The next topside target is provided by the Sep 3 high of MYR4.2297

and a push higher would expose the upper 3.0% Bollinger band at MYR4.2406. Bears

initially look for a drop below Friday's peak at MYR4.1972.