The US dollar rose +0.51% against the Ringgit this Monday and is now trading at 4.6920. Despite today’s upward movement, the sentiment behind USDMYR is one of indecision, as it has been a few days since the price hasn’t been able to break above the 4.7100 level or below the 4.6450 region. It is normal for the market to be a little bit lateralized at the end of the year, as many investors tend to stay away from the market for the holidays with their families. Investors should pay attention to the release of Malaysia’s Trade Balance data tomorrow as it may move the market significantly. Another relevant data to be released tomorrow is the Building Permits in the US. This indicator is important because it measures the number of construction permits issued in the previous month and as real estate is an important element in GDP, this indicator can signal future pressure on the demand for goods and services. From a technical point of view, if USDMYR manages to break above 4.7100, it could rise as high as 4.7500 in a few days. On the other hand, if it breaks below 4.6450, it could fall to the 4.5750 region in a few days.
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© 2019 High Leverage FX - All Rights Reserved.