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NEWSFLASH: Ringgit on the move? NEWSFLASH: Ringgit on the move?
Share this on WhatsAppUS-CHINA TRADE TALKS, BUDGET 2020 SET TO SWAY RINGGIT BY Zoe Phoon For the week ahead, Malaysia’s Budget 2020 announcement will... NEWSFLASH: Ringgit on the move?
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US-CHINA TRADE TALKS, BUDGET 2020 SET TO SWAY RINGGIT

BY Zoe Phoon

For the week ahead, Malaysia’s Budget 2020 announcement will be the highlight of the domestic calendar, according to Han Tan, market analyst at regulated forex broker ForexTime (FXTM).

The analyst said in an October 4 FXTM report that investors will be looking out for any fiscal stimulus that could offset the external economic headwinds as well as the government’s projections for year 2020’s fiscal deficit.

The ringgit may react positively to policies that can foster domestic demand.

This is considering that recent import data have shown on-year contractions for consumption and capital goods for three consecutive months through August.

On the external front, the analyst said outcome from the US-China trade talks slated next week could set the tone for risk appetite for the rest of 2019.

Headlines that show both sides drawing closer to a trade deal would encourage market sentiment and drive up risk assets in the near term.

For the week ahead, the analyst added, another bout of risk aversion could see USDMYR test the 4.20 resistance level while more dollar moderation could send the currency pair towards the 4.16 support level.

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