EUR/MYR Outlook: Slightly positive, but likely to move sideways as the rate is above its recent average and near the 3-month high, without a clear driver pushing it higher.
Key drivers:
- Rate gap: The European Central Bank is maintaining a neutral monetary policy, which may limit the euro's appreciation against the Malaysian ringgit given Malaysia's robust economic outlook.
- Risk/commodities: Oil is currently trading above its recent average, which supports Malaysia’s export-driven economy, thereby strengthening the MYR.
- One macro factor: Malaysia’s strong GDP growth projection of 5.1% for 2025 is boosting investor confidence in the MYR.
Range: The EUR/MYR is expected to drift within its recent 3-month range, likely holding close to its current level.
What could change it:
- Upside risk: A significant improvement in Eurozone economic indicators could bolster the euro.
- Downside risk: A sudden decline in oil prices could weaken the MYR, adversely affecting the EUR/MYR rate.