The US Dollar lost some ground against Ringgit this Thursday and is now trading 4.1850. The Initial Jobless Claims data came in higher than expected (362k real against 335k forecast) and this caused the US currency to drop. GDP also came in slightly higher than expected (6.7% real against 6.6% forecast). The small difference in the GDP reading was not enough to boost the Dollar. The ISM Manufacturing PMI for the month of September may give direction to the Dollar. If the ISM comes higher than the forecast, it could cause the USDMYR to resume its bullish trend. From a technical point of view, if the USDMYR breaks above the 4.1930 level, it could rise to 4.2400 in a few days.
The US Dollar has been gaining strength against the Singapore Dollar in recent days, causing an initial bullish movement, and is now trading at 1.3596. Macroeconomic data coming from the US has shown a good economic recovery and Fed’s chairman Jerome Powell has repeatedly said that inflation is temporary and will not raise interest rates until 2023. Still, the withdrawal of financial stimulus, scheduled for November, begins to cause an appreciation of the US Dollar. From a technical point of view, the USDSGD could be starting a new uptrend and if it manages to break above 1.3650, it could rise to 1.3900 in a few weeks.
