Trend Signal Now: Currency Report: Christmas in Kuala Lumpur

Friday, December 19, 2025

Currency Report: Christmas in Kuala Lumpur

The next big opportunity across the global equity landscape is setting up in Kuala Lumpur.

Malaysian capital markets have underperformed for years, but a critical variable is finally working for– instead of against– them: the home currency.

The Ringgit (MYR) has been quietly building a structural base versus the US Dollar and just resolved a textbook coil, ripping to fresh multi-year highs.

That FX flip turns a long-time headwind into a tailwind, and that's usually the fuel for the biggest upside runs for ex-US equities.

The setup here is straightforward: the currency is pushing higher while stocks – MSCI Malaysia (EWM) – grinds out of a hole.

It's the same kind of coordinated turn we've been buying all cycle in emerging markets… and continue to be rewarded for.

Here's the overlay of the Ringgit and the MSCI Malaysia ETF (EWM):

Malaysia isn't an easy market to bet on for U.S. investors—there's no deep set of ADRs and the OTC shelf is thin with even thinner volume.

For broad exposure, we're looking at the MSCI Malaysia ETF $EWM:

EWM just cleared a decade-long polarity shelf near 26.50, completing a five-year bottoming formation.

As long as bulls can hold this breakout, the path of least resistance is up.

As long as EWM remains above 26.50, we're long, targeting 36.

Thanks for reading.

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