The market has been sideways most of the day this Monday, due to the lack of macroeconomic events and the holiday in the US, which decreased the liquidity of the Forex Market. But even with the low liquidity, the dollar has fallen against the Ringgit this Monday, 5 and this happens because of the unemployment rate in the US, which showed a little, but important increase from the last reading. As the unemployment rate is growing, the market sees that the FED will likely not increase interest rate or take out the 120 billion dollars in stimulus every month, and that’s why the US dollar is likely to keep losing ground against the Ringgit. From a technical point of view, today’s candle is an engulfing pattern, meaning that the USDMYR could keep falling to the 4.1100 level.
In a low volatility day caused by a holiday in the US, the Dollar has lost some ground against the Chinese Yuan, and it is now traded at 6.4632. This week’s most important macroeconomic indicators for the dollar are the FOMC Meeting Minutes, on Wednesday and the Fed Monetary Policy Report, on Friday. That news can bring some light about the future of the interest rates for the dollar. For the Chinese Yuan, the most important news is the Consumer Price Index (CPI), due on Thursday. From a technical point of view, if the price breaks below the 6.4550, it could go to the 6.4050 in 1 or 2 weeks.
