The US Dollar remains sideways against Ringgit on Tuesday, trading at 4.1495. The sentiment of indecision dominates the market due to expectations about the Fed’s next steps in monetary policy and also due to a weak macroeconomic agenda on Monday. Consumer Confidence can give a direction to the Dollar as it is seen as a leading indicator (it can predict consumer spending). The forecast is 108.3 and if the reading comes in higher than expected, it could cause an upward movement in the USDMYR. From a technical point of view, if the USDMYR manages to break above the 4.1600 level, it could rise to 4.2400 in a few days.
The US Dollar remains stuck in a sideways price action against the Singapore Dollar on Tuesday, trading at 1.34692. The Consumer Price Index data came in slightly higher than expected for the Singapore Dollar. Normally this would favour the SGD over the US Dollar, but the rise in the number of Covid cases in Singapore worries local authorities and investors and that’s why the USDSGD remains in a sentiment of indecision. The Consumer Confidence and New Home Sales data, both for the USD, may give the market more direction on Tuesday. From a technical point of view, if the USDSGD breaks above the 1.3530 level, it could enter an uptrend and reach for 1.3730 in a few days.
