PETALING JAYA: The ringgit is expected to continue trading cautiously this week, as investors await a slew of economic data scheduled to be released by several major economies.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the focus would be on China’s fourth-quarter 2023 gross domestic product numbers which will be released on Wednesday, along with the UK and European Union’s consumer price index (CPI).
“Given the recent US CPI print which turned out to be higher than expected, markets would reassess their position on whether the rate cut could happen as early as March,” he told Bernama.
He pointed out that the ongoing military conflicts in the Red Sea and Yemen could result in higher crude oil prices which could have an impact on inflation.
“The conflicts occurring in the Red Sea have resulted in the decline in traffic by 20% year-on-year as most vessels needed to re-route to the Cape of Good Hope to avoid the conflicting areas,” he said.
