Forecasts for EUR to MYR
The forecast for the EUR to MYR exchange rate indicates a complex interplay between macroeconomic factors and geopolitical developments. Currently, the euro (EUR) is performing robustly, trading at 30-day highs near 4.9040, which is about 0.8% above its three-month average of 4.8656. This strength can be attributed to a recent depreciation of the US dollar (USD) and hawkish commentary from European Central Bank (ECB) officials, particularly regarding stable economic growth expectations.
Indicators suggest that the EUR could face pressure from recent negative economic data, including a forecasted narrowing of the Eurozone's trade surplus and a projected 1.3% decline in industrial production for April. Economic analysts caution that such downbeat data may dampen the euro's upward momentum in the near term, especially as the Eurozone continues to grapple with geopolitical uncertainties stemming from the ongoing war in Ukraine.
Conversely, the Malaysian ringgit (MYR) is facing challenges due to new tariffs imposed by the US, which includes a 24% tariff on Malaysian imports. This is contributing to a deteriorating outlook for emerging Asian currencies, as analysts express concern that the trade conflict will further weaken regional currencies. The MYR's recent declines mirror broader trends, with currencies like the Thai baht and South Korean won also experiencing significant drops.
The fluctuations in oil prices are further complicating the outlook for both currencies. Currently, oil prices are at $74.23, which is approximately 10.9% above the three-month average of $66.94. Since oil prices are a critical driver for Malaysia, any sharp changes can significantly impact the MYR's exchange rate.
In summary, while the euro appears to maintain strength against the backdrop of supportive ECB statements and a weaker USD, the MYR faces headwinds from tariffs and regional currency volatility. Observers suggest that the near-term trajectory of the EUR/MYR pair will heavily depend on economic data releases from the Eurozone, developments in the ongoing trade war, and fluctuations in global oil prices.