The US Dollar made a bullish move against Ringgit this Monday and is now trading at 4.2260. Malaysia’s Industrial Production brought in a higher-than-expected number (+1.4% real against -0.3% forecast) and this has the potential to cause some buying pressure in Ringgit. On the other hand, unemployment rose from 4.5% to 4.8% and this could weaken Ringgit over the next few days. So, with mixed data coming from Malaysia, most of the bullish movement today was caused by the US Dollar, which appreciated against virtually all of its counterparties. From a technical point of view, if the USDMYR breaks below the 4.2130 level, it could fall to the 4.1750 level in a matter of days.
The US Dollar has been gaining ground against the Singapore Dollar in recent days and is now trading at 1.3572. Since Fed’s Vice President Richard Clarida announced that the Fed may have criteria to raise interest rates earlier than expected, the dollar has appreciated against most of its counterparties. A likely bullish trend may be starting in the dollar at this time and the USDSGD could rise as far as the 1.3725 and 1.3900 levels. This Wednesday, the Consumer Price Index data will be released, which will bring information about inflation in the US. These data are vital for investors, as the Fed is relying primarily on inflation and in the unemployment rate to create its monetary policies. If inflation comes in higher than expected, the US Dollar could appreciate further in anticipation of likely interest rate hikes.
