Malaysian 1-Yr Swaps May Extend Decline If BNM Dovish: Analysis
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- Malaysian 1-yr swaps may move toward support at 3.3913%, 61.8% Fibonacci retracement of 2012-2015 rally, in the medium term if Bank Negara Malaysia adopts a dovish stance on concern over how Brexit may impact global growth, Bloomberg strategist David Finnerty writes.
Alert: HALISTER1- The central bank is forecast to leave rates unchanged at 3.25%, according to 11 of 12 economists in Bloomberg survey, with one predicting a 25 bps rate cut
- Decision due July 13 at 3:00 pm local time
- At its last meeting in May, BNM said it was closely monitoring the impact of possible “downside risks” in the global economic and financial environment
- The central bank then highlighted the “continued weakness in the external sector.”
- MACD remains bearish with reading below zero and signal line
- ADX and DMI studies indicate that there still remains a strong downward trend
- Malaysia 1-yr swaps steady at 3.4950%
- NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Source: BFW (Bloomberg First Word)
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UUID: 7947283