Ringgit slides ahead of ECB

(July 20): Ringgit dips from a one-month high as EM currencies in Asia get mildly sold down, ahead of central bank meetings in Japan and Europe Thursday.

* USD/MYR little changed at 4.2855; reached 4.2815 Wednesday, lowest since June 20.

** Support 4.2810, 4.2663, 4.2505; resistance 4.2940, 4.3337, 4.3525

* Ringgit will get a boost from further inflows into Malaysian bonds, as a combination of capped U.S. interest rates and relatively low volatility encourage a reach for yield, says Stephen Innes, a senior Asia-Pacific currency trader at Oanda in Singapore.

** Sees USD/MYR testing 4.25 on a dovish Fed outlook

The Edge Markets via Bloomberg

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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