The US Dollar has been flat against the Ringgit this Monday, with little economic drivers and a lot of apprehension from the market, in anticipation of the FOMC for the monetary policy, due on Wednesday. This report (FOMC) is the single most important event in the last days, as this could give signals about the next steps in the monetary policy from the USA. There is the decision from the FED about the dollar interest rate (also on Wednesday), which is unlikely to change. Among the options available to the FED to control inflation, changing interest rates is likely to be the last resource. From a technical point of view, the USDMYR could keep losing ground until it reaches the 4.0950 level.
The Ringgit has ended this Monday flat against the Chinese Yuan with a weak economic agenda. The whole market is sideways waiting for the FOMC data that comes on Wednesday, which will give a direction about the interest rate for the US dollar. As the US dollar is the most traded currency, any important decision will reflect on other economies, stocks and currencies. On Wednesday, the Chinese unemployment rate and the Industrial production, also from China could give a better view on the pair. From a technical point of view, after a long down trend that began in January 2020, the Ringgit seems ready to start gaining power against the CNH. An upward momentum could bring the MYRCNH to the 1.6000 in a matter of weeks.
