Volatility ahead of key US macro data and August 1 tariff deadline
Performance: The ringgit strengthened more than expected, hovering around 4.22–4.23/USD as the DXY slipped below the 98.0 mark.
Market Dynamics: The USD came under pressure early in the week despite no clear catalyst. A stronger EUR, boosted by defensive reallocations ahead of the August 1, drove the drift. Markets appeared to favour the EUR in light of tariff uncertainties. Meanwhile, the JPY also gained ground following the US-Japan trade agreement, adding to USD weakness. These moves supported risk assets, prompting rotation from US and into EMs
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