Despite its best efforts, Iran won’t be able to toll the Strait of Hormuz. Here’s why 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
State of emergency in Crimea as Ukraine focuses pressure on ‘jewel in Putin’s crown’ 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
USA at 250: the Black American struggle for life, liberty and the pursuit of happiness 
Buy the Dip: Gold Holds Strong at $3980, Targets $4150 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Morgan Stanley Names BAE Systems Top European Defence Stock Despite Lower Price Target 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
In a rebuke to Trump, the Supreme Court rules that birthright citizenship is the law of the land 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Data released by the federal Department of Statistics on Wednesday showed that Malaysia's consumer prices rose at a slower-than-expected pace in June. Seasonally adjusted headline inflation fell 0.2 percent month-over-month in June, the fourth consecutive monthly decline. Consumer prices in June rose 3.6 percent from a year earlier, lower than forecasts for an unchanged 3.9 percent.
The fall was driven mostly by costlier fuel and food, with the transport index rising 10.5 percent from a year earlier, according to data from the Statistics Department. Core inflation, which excludes most volatile items such as fresh food and energy prices, rose 2.5 percent in June compared to the same month last year, a slight moderation from a level of 2.6 percent in the previous month.
Last week, Bank Negara Malaysia (BNM) held the key Overnight Policy Rate at 3.00 percent on expectation that inflation rate may ease in the second half of the year, while economic growth picks up pace. Overall, the evolution of inflation is consistent with BNM’s anticipated trajectory. Today's data will likely bolster the central bank's view that inflation rate will further moderate later this year and will allow the central bank to focus mostly on risks to domestic economic growth.
"June’s inflation print does not make a case for a change in the overnight policy rate. Apart from the fact that the inflation trajectory is in line with BNM’s expectations, we suspect that BNM would be keen to see the real policy rate returning to positive territory. This, in turn, should enhance ringgit stability," said ANZ research in a report.
USD/MYR was trading at 1.2810 at the time of writing, down 0.07 percent on the day. Upside was capped at 5-DMA at 4.2865. Price action is below daily cloud and major moving averages. We see scope for further downside. Test of 4.2530 levels likely. At 1140 GMT, FxWirePro's Hourly USD Spot Index was bearish at -98.8764 levels. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
