HALISTER1: Buy USD/MYR 3-Month NDF Amid Risk of Political Instability: NAB

Buy USD/MYR 3-Month NDF Amid Risk of Political Instability: NAB

(Bloomberg) -- USD/MYR 3-month NDF may rise with political risks in Malaysia underpriced by the markets, Julian Wee, strategist at NAB, says in note.
  • Scrutiny of govt has increased, with authorities in Switzerland, Singapore and Hong Kong stepping up investigations into financial irregularities at 1MDB
  • Tension within UMNO is rising; departure of certain high- profile figures, if coalescing into a separate political force, could mortally wound UMNO and threaten the viability of the current govt, says Wee
  • Buy 3-month NDF with spot reference at 4.1850, targeting 4.3500 and stop-loss at 4.1300; spot USD/MYR now down 0.3% to 4.1918
  • USD/MYR 3-month NDF falls 0.2% to 4.2015
  • NOTE: Mahathir quits ruling party citing PM Najib’s scandals; separately, WSJ says deposits in Najib’s accounts exceeded $1b
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Julian Wee (National Australia Bank Ltd)

To de-activate this alert, click here

UUID: 7947283