As mentioned in the previous week (28 May - 1 June), there is further upside in USD strengthening due to funds flight that usually happen during uncertain time. USD has strengthen further to 3.20. Well 3.20 level is critical to watch. Should this level to be breached, further strengthening is highly possible. Lets look at 5-year chart below.
Obviously, there is more to come.
Interestingly, for the first time, USDMRY is moving in tandem with KLCI, it simply tells you that only local funds are buying whilst the foreign funds are leaving KLCI. Hence KLCI rally may not be sustainable in the short run. Be extremely careful.
Dow gave up 2.22% last Friday. Well, hopefully the bloodshed next Monday will be not be that severe! Would be it, we shall see.
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