USD/MYR Technical Analysis

The US Dollar was lower against the Ringgit on Thursday and is now trading at 4.1840. The Consumer Price Index (CPI) data for the USD provided a reading of the highest US inflation in 39 years. This puts the Fed under pressure to start raising interest rates for the USD. Market analysts are already talking about 4 possible interest rate hikes still in 2022. Although higher inflation would mean appreciation of the USD, the opposite happened and this is due, in part, because the market was already priced this inflation. Still, the fall in the USDMYR is unlikely to hold much longer and the price could find support near the 4.1650 region. If the price respects this support, it can go up to the 4.2400 level in a few days.