KUALA LUMPUR, Dec 7 ― The ringgit is expected to move on a cautious note next week, trading range bound between 4.1470 and 4.1800 as investors await the outcome of the tariff deadline between the United States (US) and China.

FXTM market analyst, Han Tan said that investors will remain sensitive to any headlines pertaining to the US-China trade deal, as they count down the days to US President Donald Trump’s December 15 deadline on a scheduled tariff imposition on Chinese goods.

"More signs of an imminent ‘phase one’ trade deal could translate into further gains for Asian currencies. However, should investors get the sense that more trade tariffs are on the horizon, that would deal a significant blow to risk appetite,” he told Bernama.

He added that Malaysia has a light economic calendar for the week ahead, with the October industrial production figures set to remain in expansionary territory ― a run that has been uninterrupted since February 2013 ― despite the headwinds evident in the current macroeconomic climate.

"Despite strong local data which indicates stable expansion, external factors should remain the primary driving force in the ringgit’s performance,” he said.

Aside from the US-China trade talks, the market would also react to the upcoming UK elections on December 12.

"On that note, amid the global uncertainties, the US Federal Reserve and the European Central bank are expected to leave their respective policy settings unchanged at their final scheduled meetings for the year,” he said.

Over the week, the ringgit was mainly influenced by the increasing oil price as well as the ongoing US-China trade talks.

On a Friday-to-Friday basis, the local note slightly increased against the greenback to 4.1580/1610 from 4.1750/1780 last week.

However, the ringgit performance had weakened compared to a basket of major currencies.

The ringgit was slightly down against the Singapore dollar at 3.0571/0605 from 3.0550/0579 previously and depreciated vis-à-vis the yen to 3.8284/8315 from 3.8100/8138.

The local currency also declined versus the euro to 4.6137/6179 from 4.5938/5987 and slipped against the pound to 5.4570/4613 from 5.3807/3859.  ― Bernama