MYR/THB Outlook:
Slightly positive, but likely to move sideways, as the MYR trades above its recent average without a clear driver.
Key drivers:
• Rate gap: The Malaysian central bank's supportive stance contrasts with the Thai central bank's recent effort to regulate the gold trading market, impacting the THB.
• Risk/commodities: Oil prices have recently stabilized above average levels, contributing to a stronger MYR due to Malaysia's status as an oil exporter.
• One macro factor: Malaysia's economy showed robust GDP growth, driven by domestic consumption and key sectors, further supporting the MYR.
Range:
The MYR is likely to hold within its recent range, as it fluctuates above the average without strong upward momentum.
What could change it:
• Upside risk: A significant increase in oil prices could provide further strength to the MYR.
• Downside risk: Any intervention by the Bank of Thailand to control the baht’s strength may weaken the MYR against the THB.
