The EUR to MYR exchange rate exhibits a range-bound bias.
Key drivers include:
- The European Central Bank's (ECB) flexible interest rate policy and the anticipated interest cuts from the Federal Reserve may narrow the interest rate differential, affecting the euro's strength.
- Economic growth projections in the eurozone, supported by fiscal measures, add a positive outlook for EUR demand.
- On the Malaysian side, strong GDP growth and improving fiscal conditions suggest support for the MYR.
In the near term, the trading range for EUR to MYR is expected to remain stable, influenced by current price dynamics. EUR has traded around 4.7392, slightly below its three-month average.
An upside risk could arise from improved Eurozone economic stability or resolution of geopolitical tensions, boosting euro confidence. Conversely, a downside risk includes rising oil prices, which could lead to volatility in the currency pairs, affecting MYR and euro valuations.