USD/MYR: Range trade near multi‑year lows – Commerzbank

💡 DMK Insight

Malaysian industrial production is outperforming expectations, and here’s why that matters for traders: The uptick in production, particularly in electronics and export-oriented sectors, signals a potential rebound in Malaysia’s economic health. This could lead to increased demand for the Malaysian Ringgit (MYR) as foreign investment flows in, especially if the trend continues. Traders should keep an eye on the MYR against major pairs, particularly USD/MYR, as a strengthening currency could indicate broader market confidence. However, the noted weakness in mining suggests that not all sectors are thriving, which could temper bullish sentiment if it persists. Watch for any updates on mining performance in the coming weeks, as this could shift the narrative. On a technical level, if USD/MYR breaks below recent support levels, it could trigger further buying in the MYR. Conversely, if mining issues linger, it might create volatility. Keep an eye on the upcoming economic data releases for further insights into Malaysia’s industrial landscape, as these will be crucial for positioning in both forex and related equities.