Malayan Banking Berhad: Long-term strategy remains to sell US dollars on rallies

Malayan Banking Berhad stated that disappointing US economic data led to overnight market volatility, prompting adjustments to market pricing for the Fed's three rate cuts in 2024. We remain cautious about the excessive support for the US dollar. The US dollar index did rebound yesterday, mainly due to weakness in the euro and pound, with the yen providing some relief to the US dollar index rebound. We believe that if the non-farm payroll data conveys weakness (or strength) in the labor market, we may see some larger fluctuations, especially considering the current expectations for Fed rate cuts. Nevertheless, we still adhere to the strategy of selling the US dollar on rallies in the long term