EUR/MYR settles below 6-week high, posts weekly loss

The EUR/MYR currency pair settled below recent high of 4.9692, its strongest level since July 28th, in the wake of the European Central Bank’s policy decision.

The ECB left all three of its benchmark interest rates without change:

– the main refinancing operations rate – at 2.15%;
– the deposit facility rate – at 2.00%;
– the marginal lending rate – at 2.40%.

The policy decision reflected updated inflation and GDP forecasts.

Euro Area’s headline inflation is forecast at 2.1% in 2025 (compared to 2% in the prior projection), at 1.7% in 2026 (compared to 1.6% in the prior projection) and at 1.9% in 2027 (compared to 2% in the prior projection).

Core inflation is projected at 2.4% in 2025, 1.9% in 2026 and at 1.8% in 2027.

And, GDP growth is projected at 1.2% in 2025 (compared to 0.9% in the prior projection), 1% in 2026 (compared to 1.1% in the prior forecast) and at 1.3% in 2027.

During the post-meeting press conference, ECB President Christine Lagarde said growth risks in the region were more balanced and the disinflationary process was over.

In the meantime, data out of Malaysia showed that retail sales in the country had risen 5.6% year-on-year in July, or at the fastest rate since March.

This followed a 5.4% YoY surge in June.