FW: [Maybank] MYR – Is It Correcting Towards its Fair Value?

 

 

, GBL: MYR – Is It Correcting Towards its Fair Value? FX Insight by Saktiandi Supaat FX Research We believe there is room for MYR to extend its gains. In fact we see this episode as a correction towards its fundamental value. Based on BIS data, the current level of MYR REER is about 7.6% undervalued relative to its 10-year average. On z-score basis, MYR REER is about 1.3 standard deviation below its 10-year mean and remains "relatively cheap" amongst AXJs. While momentum is bearish, technicals are flagging the risk of technical rebound in USDMYR, possibly towards 4.03, 4.05 in the near term Saktiandi Supaat    (65) 6320 1379    saktiandi@maybank.com.sg Christopher Wong    (65) 6320 1347    wongkl@maybank.com.sg Disclaimer This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. To unsubscribe or change preference settings, please contact your representative HERE.