HALISTER1: INSIDE MALAYSIA: Ringgit Falls; 5-Year CDS Tightest in Two Weeks

INSIDE MALAYSIA: Ringgit Falls; 5-Year CDS Tightest in Two Weeks

(Bloomberg) -- Ringgit slips 0.1% to 4.1330 per dollar
  • Five-year credit-protection costs for Malaysia declined by 10 bps to 184 bps yesterday, lowest close for two weeks: CMA
  • Pivot point at 4.1376; FX pair’s support at 4.1077, 4.0856, 4.0336; resistance at 4.1597, 4.1896, 4.2416
  • Pair is challenging 38.2% Fibonacci retracement of trading range since May; see chart here, also above its 200-DMA at 4.0760 since Oct. 2014
  • Ringgit 1-mo. NDF rises 0.3% to 4.1283
  • USD/MYR seen averaging 4.20 in 2016 and 4.03 in 2017, BMI Research writes in note yesterday
    • Political tensions to ease over the coming months, removing some degree of uncertainty
    • Country’s modest current account surplus reflects the competitiveness of the currency, should provide fundamental support over the medium term
  • Malaysia to sell MYR4b 7.5-year bonds today
  • Yield on 3.955% govt bond due Sept. 2025 closed yesterday little changed at 3.917%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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