FXstreet.com (Barcelona) - Since Malaysia remains fundamentally strong, in view of Nomura FX strategists, and with upcoming national elections associated with larger-than-normal capital inflows, and some allowance of MYR appreciation by the authorities, Nomura continues bearish on USD/MYR. The bank is adding a short USD/MYR at 3.0590.
Nomura expands: "A near-term risk to our short USD/MYR (and long Asia FX) recommendations is the potential bid in broad USD following some Fed members indicating last week that QE may slow or stop “well before the end of 2013”. However, Nomura US Economics forecasts weak US growth in the early part of this year (largely related to the fiscal cliff) and the absence of a “substantial” improvement in the US labour market could limit expectations of a near-term Fed exit from QE."
Nomura expands: "A near-term risk to our short USD/MYR (and long Asia FX) recommendations is the potential bid in broad USD following some Fed members indicating last week that QE may slow or stop “well before the end of 2013”. However, Nomura US Economics forecasts weak US growth in the early part of this year (largely related to the fiscal cliff) and the absence of a “substantial” improvement in the US labour market could limit expectations of a near-term Fed exit from QE."
