The Dollar dropped slightly against the Ringgit on Friday and is now trading at 4.1870. The Initial Jobless Claims data brought a higher than expected reading (286k real against 220k forecast), which tends to be negative for the Dollar. The Existing Home Sales (for the US) also came worse than expected (6.18M real against 6.44 forecast), signalling that the real estate sector is a little less heated than expected. Both news for the Dollar were the cause of the fall in USDMYR. From Malaysia, the interest rate remained unchanged at 1.75% and this could favour MYR in the short term. From a technical point of view, if USDMYR manages to break below 4.1719, it could drop as low as 4.1400 in a few days. Still, investors will be on the lookout for the next Fed meeting scheduled for January 25th, where the interest rate for the USD could rise.
