USDMYR Technical Analysis

The US Dollar continued its bullish move against the Ringgit on Thursday and is now trading at 4.6800. The bullish move comes amid the release of Producer Price Index (PPI) data for the USD for the month of September, which came in slightly higher than expected (8.5% real versus 8.4% forecast). This signals that inflation remains high in the US, as the PPI measures the change in the price of goods, products and services used by companies to produce their products. But the most important element remains the FOMC Meeting Minutes, released yesterday, which provided an overview of the monetary policy view adopted by the Federal Reserve (FED) at the moment. Several FOMC members said that they remain determined to maintain price stability by raising interest rates, but it is also necessary to balance this increase so that it does not have undesired effects on the economy. Overall this means that the USD interest rate will likely continue to increase until the end of the year, but it is already a sign of a possible slowdown in the pace of interest rate increases. The impact on USDMYR could be a continuation of the bullishness in the short to medium term, but at a slower pace.