The US Dollar has moved sideways against the Ringgit this Thursday. The overall sentiment is of indecision due to a low economic agenda from the US and Malaysia. Today we could see some volatility coming from the US due to the release of three macro indicators from the US: Core Durable Goods Orders, GDP (Q1) and Initial Jobless Claims. The GDP for the first quarter is the most important driver to be watched today, as investors pay attention to this number in order to understand the path of recovery in the US and thus the possibility of a change in the interest rate. Should the price break below 4.1340, it could fall until 4.1000 in the coming weeks.
The Singapore Dollar has been gaining ground against the Ringgit in the last days once it broke above the 3.1050 level. This seems to be happening because of the increasing number of new infections by Covid-19 in Malaysia and the second wave of the virus is already 40% bigger than the first wave. Singapore has managed to administrate at least one shot of the vaccine in almost 40% of the population while Malaysia has administered at least one shot in about 5% of the population. Those numbers start to show in the devaluation of the Ringgit. Should the Ministry of Health from Malaysia change this situation, the Ringgit could keep losing ground against the Singapore Dollar and its other counterparts.
