Sell-off to persist ahead of US key macro data, but minor technical correction likely
The recent shift in global risk sentiment, driven by escalating tensions in the Middle East and persistent vulnerabilities in the Chinese economy, has push the ringgit to once again breach the 4.70/USD threshold. This was exacerbated by the pushback from Fed officials against an early easing cycle, coupled with a robust performance in US retail sales. Despite the better-than-expected US macro readings, the USD index exhibits a relatively subdued response, attributable in part to the enduring strength of the equity market. Additionally, risk assets have suffered setbacks due to the market's tempered expectations for Fed rate cuts.
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