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Top 10 Forex Events to Watch for on the Economic Calendar

Traders, investors, and economists use economic calendars as tools to track and monitor important national and international events and news releases that may impact the financial markets. For Malaysian traders who trade the USD/MYR, several economic and political factors influence the exchange rate of the Malaysian Ringgit. One example is global commodity prices. Malaysia is a major exporter of natural resources such as palm oil and rubber, so fluctuations in these commodity prices can have a significant impact on the value of the MYR. Forex traders use economic calendars as tools. 

Key Events that Could Affect the MYR

FxScouts offers a free real-time economic calendar or forex calendar that provides information on different currencies, economic events that could affect them, the relevant country or region related to the event, and the specific time and date of occurrence.

The most important events to keep an eye on are the following:

  1. The Federal Open Market Committee (FOMC) Meetings
    These meetings play a significant role in shaping monetary policy in the US as they announce interest rate decisions and provide insights into the state of the economy.
  2. Non-farm Payrolls (NFP) Report
    This report can significantly impact USD/MYR Forex trading. A strong NFP indicates a healthy US job market and that in turn strengthens the USD's value against the MYR.
  3. Consumer Price Index (CPI) Inflation
    High US CPI inflation can pressure the Federal Reserve to increase interest rates, potentially strengthening the USD.
  4. Retail Price Index (RPI)
    Like CPI, the RPI measures inflation but uses a different methodology. Traders should monitor both reports to get a well-rounded view of inflationary pressures.
  5. Retail Sales
    Strong retail sales are an indication of a healthy economy, whereas weak retail sales could signal a slowdown in the economy and potentially weaken the MYR.
  6. Purchasing Managers' Index (PMI)
    This index shows the current direction of economic trends in the manufacturing and service sectors. As Malaysia is a major exporter of manufactured goods, trends in the manufacturing sector are often perceived as more important than those in the service sector.
  7. Gross Domestic Product (GDP)
    It is an indicator of a country’s economic health. Strong GDP growth in a country boosts its currency.
  8. Interest Rate Decisions/Announcements
    Decisions by the Bank Negara Malaysia and the US Federal Reserve directly influence the value of USD and MYR relative to each other.
  9. Current Account Balance

A surplus in Malaysia's current account can strengthen the MYR, while a current account deficit can weaken the MYR.

Manufacturing Production - A strong manufacturing sector in Malaysia can be positive for the MYR. It is important to note, however, that global trends also have a strong influence.

Traders should consult the economic calendar regularly, ideally daily, to stay up to date on upcoming events and adapt their strategies accordingly if needed.

In Conclusion

Staying informed about key economic events and their potential impact on the USD/MYR exchange rate, and implementing sound risk management strategies, empower Malaysian Forex traders to make informed decisions and navigate the fluctuating Forex trading market.

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Andrew Gosselin CPA

Written by Andrew Gosselin CPA

Andrew Gosselin, CPA is a former senior strategy consultant for a global, multi-billion-dollar software company. He is the Senior Contributor / Editor at MoneyInc, and he holds degrees in accounting, finance, and international business from Bentley University, where he played varsity basketball and was the Lead Tutor of the accounting and finance curriculum for the Bentley Athletic Department. Andrew was named a President's Academic Scholar and was inducted into the Falcon Society, a distinction awarded by the Bentley faculty and his peers for being among those with the highest achievement and abilities in his graduating class.

Read more posts by Andrew Gosselin CPA

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