USDMYR Technical Analysis

The Fed raised the interest rate to 1% for the USD on Thursday, as expected by the market. However, the press conference released 30 minutes later brought a more optimistic view on the part of the FOMC. Among other things, it was said that a 0.75% hike in the interest rate at the next meeting is out of the plans at this time and that the interest rate is most likely to increase by 0.5% again. It was also said that inflation has most likely already peaked and that it is now stabilizing. Regarding the job market, it was said that it is very heated at the moment and that a decrease in the pace of job creation is something to be expected. So, despite the interest rate hike, the speech was not as Hawkish as expected and this could cause the USD to depreciate a bit over the next few days. From a technical point of view, considering the huge rally the USDMYR has made in the last few days, it is likely to drop to the 4.2500 region where it might find temporary support.