Ringgit To Trade Cautiously Next Week

KUALA LUMPUR, May 9 (Bernama) -- The ringgit is expected to trade cautiously against the US dollar next week, with investors to closely monitor developments related to COVID-19, the US-China trade tensions and the country's first-quarter (1Q20) gross domestic product data (GDP).  Financial services firm AxiCorp’s chief global market strategist Stephen Innes said the focus would also be on China's retail sales and industrial production to be released next Friday, which is anticipated to come out fine as signs of life in mainland resonate.  "There will be pre-trade jitters early next week ahead of the US-China trade chiefs' call but it should not be too much of an obstacle as China is set to confirm its obligation to fulfil the limited phase one trade deal commitment. "I think the ringgit will trade defensively but should improve as crude oil prices continue to stabilise and China data round out the week on a positive note," he told Bernama. Bank Negara Malaysia will release Malaysia's 1Q20 GDP data on Wednesday, May 13, 2020. Another financial trader said the country's first-quarter GDP is forecasted to be weak as the country's economic activities had been significantly dampened by the COVID-19 pandemic and the imposition of the Movement Control Order (MCO) to contain the spread of the virus.  The highly-infectious coronavirus which was first detected in Malaysia in January had forced the government to introduce the MCO which required the people to stay indoors and businesses to shut their operations, as the country strived to flatten the curve of transmissions.  The pandemic has also forced the country to shut its borders, bringing the lucrative tourism sector to a halt.   "The lockdown which happened in almost all countries throughout the world has reduced business activities and badly affected the tourism sectors," he told Bernama. -- BERNAMA