CAD/MYR Outlook:
Slightly weaker, but likely to move sideways, as the rate is below its recent average and lacks a clear driver.
Key drivers:
- Rate gap: The Bank of Canada's cautious stance on interest rates contrasts with the more supportive environment for monetary policy in Malaysia.
- Risk/commodities: Soften oil prices have pressured the CAD, as Canada is a major oil exporter. Recent trends show oil prices are notably above their three-month average but are facing fluctuations.
- One macro factor: Malaysia's resilient economic performance, marked by strong GDP growth, supports the MYR against the CAD.
Range:
Expect the CAD/MYR to hold steady, potentially drifting within its recent range as the market digests these influences.
What could change it:
- Upside risk: A significant recovery in oil prices could strengthen the CAD against the MYR.
- Downside risk: Continued softening in oil prices, coupled with weak Canadian economic data, may deepen CAD weakness.