I just came back from a CPD event and this is what I heard. Let me share it with you:

1) The speaker showed the audience the line plot chart over time of oil price and MYR. There appear to be positively correlated, meaning oil price go up so will MYR and vice-versa.

2) currently oil price is very low, so don't be surprise MYR is low.

3) Why is oil price low? Simple: Supply more than demand!

4) USD will increase. Why?
a) US economy is recovering as PMI numbers are > 50
b) unemployment numbers are continuously low
c) Fed rate increasing and will increase slowly but surely.

5) Hence for the near term, MYR will weaken against USD.

So, long USD; short MYR!

Xuzen

Sorry lar Enchik Cherroy, I am not a forex player mah!

I just heard it from the speaker during a CPD event which I attended last weekend and I choose to repeat his message her for the benefit of all.

Sharing is caring.

Xuzen