Choppy week ahead: US data delays and global geopolitics keep 4.22/USD in focus
Performance: The ringgit traded weaker within a narrow 4.21-4.22/USD range this week, despite the US government shutdown. The greenback gained ground as both the EUR and JPY softened.
Market Dynamics: With limited US data, investors turned their focus abroad. In Japan, markets reacted negatively to Sanae Takaichi’s election as prime minister over Shinjiro Koizumi. The yen weakened and the JGB curve steepened as traders scaled back expectations of a BoJ rate hike. In France, PM Sébastien Lecornu’s resignation briefly unsettled markets, though reports that President Macron may soon appoint a successor helped steady the EUR. The latest FOMC minutes offered little new insight. The Fed remained cautiously upbeat on growth while mindful of labour-market softness.
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