USD/MYR seen side-lined near term – UOB

USD/MYR is expected to follow a rangebound pattern in the short-term horizon, likely between 4.1380 and 4.1650, according to Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (28 Jun, spot at 4.1510), we highlighted that ‘conditions remain overbought and the chance for USD/MYR to break above 4.1700 is not high’.

“We added, ‘for this week, USD/MYR is likely to consolidate and trade between 4.1350 and 4.1630’. Our view was not wrong even though USD/MYR traded within a narrower range than expected (4.1410/4.1640). The movement in USD/MYR is still viewed as part of a consolidation”.

“In other words, USD/MYR could continue to trade sideways for this week, likely within a 4.1380/4.1450 range.”