Halister News

(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.

• 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.