The EUR to MYR exchange rate shows a bearish bias as the euro remains steady around 4.7647, just below its three-month average.
Key drivers include the narrowing interest rate differential as the Federal Reserve is expected to cut rates, potentially supporting the MYR. Additionally, strong GDP growth and fiscal reforms in Malaysia promise favorable economic fundamentals for the MYR. In contrast, the European Central Bank's flexible stance on interest rates aims to balance inflation, keeping the euro supported.
In the near term, the EUR/MYR is expected to trade within a stable range, reflecting recent patterns with minimal volatility.
Upside risks include the potential for further monetary easing in the U.S., which could favor the MYR. A downside risk is an escalation in the geopolitical tensions in Ukraine, which may add volatility and negatively affect the euro's valuation. The movement of oil prices, currently near $61.78, will also impact market sentiment, as fluctuations could directly influence the currencies involved.
