Brexit referendum will be the key driver. A “Leave” outcome can trigger a strong GBP/USD sell-down to 1.3503 level which we saw in 2009 or the 1.230 level when UK left ERM in September 1992.

Highlights of this week’s FX Weekly as follow:-

·         Brexit referendum will be the key driver. A “Leave” outcome can trigger a strong GBP/USD sell-down to 1.3503 level which we saw in 2009 or the 1.230 level when UK left ERM in September 1992. ·         EUR/USD should experience more downwards pressure as flows seek alternative safe-haven assets especially in first half of this week. ·         Under the “Leave” scenario, we expect the USD/JPY to experience strong movement, possibly dipping the 100 threshold. ·         For USD/MYR, a triangle formation is more likely to take place hovering around the upper range at 4.120-4.155 if Brexit materialises. Biddish tone is likely to stay for whole week ·         Watch for the narrowing of 50/100-day MA gap for a case of strengthening USD/MYR. Otherwise, a pullback to 4.055 is on the cards.