Malaysia: BNM keeps rates on hold – UOB

Pablo Piovano FXStreet

Senior Economist at UOB Group Julia Goh and Economist Loke Siew Ting comment on the latest decision by the Bank Negara Malaysia to leave rates unchanged.

Key Quotes

“Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged for the fifth straight meeting at 1.75% today (6 May). This was in line with Bloomberg consensus and our expectations. The next scheduled Monetary Policy Committee (MPC) decision is on 8 July 2021.”

“The overall tone of the latest monetary policy statement is deemed neutral and largely unchanged from March’s statement even as the country is facing higher COVID-19 cases and tighter containment measures in targeted areas. BNM indicated further improvement in both global and local economy, supported by increased manufacturing and trade activities. The ongoing roll-out of the domestic vaccination program and continued policy support is expected to lift sentiment and aid recovery. More vaccine supplies are scheduled to arrive by mid-year.”

“BNM reiterated that the current level of interest rate remains appropriate and accommodative amid persistent downside risks to the growth outlook. Although parts of the economy are expected to face lingering challenges due to pandemic-related risks, we see further room to ease rates will be constrained by a temporary run-up in inflation. We expect BNM to keep the OPR steady at 1.75% for the rest of the year.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.