In a day with multiple news, The US Dollar ended flat against the Ringgit this Wednesday. The most important data was the ADP Non-Farm Employment Change, which brought a number a little bit higher than expected, but not enough to cause a very big impact (692k against a forecast of 600k). Although it was not much above the expected, the ADP is considered a good predictor of the official Non-Farm Payroll issued by the government on Friday. If the NFP (on Friday) indeed comes higher than expected, then we could see some upward momentum. Another important macro indicator released yesterday was the Pending Home Sales and this number came much higher than expected (8% against 0,8% of forecast). Even with good numbers for the Dollar, the main sentiment in the market was of apprehension due to the new Delta variant of the Covid-19, which is already a global threat. From a technical point of view, if the price breaks above the 4.1700, the price could go to the 4.2000 level.
In the last few days, the US Dollar has been moving sideways against the Indian Rupee and it is now traded at around 74.37. Amid increasing concerns about inflation in the US and new variants of the coronavirus, the market seems to be holding its breath, looking forward for more new information, especially from the macroeconomic data from the US. Today the Initial Jobless Claims will likely set the intraday path for the Dollar. But the most important data will come on Friday, the Non-Farm Payroll and the Unemployment rate, both from the US. As the FED’s chairman, Jay Powell already previously stated, the main goal from the FED now is to bring the unemployment rate to the pre-pandemic levels. Should the unemployment rate come much lower than expected on Friday, the market is likely to understand that the FED will increase interest rate before 2023 and the Dollar will gain more power against the Rupee.
