The US Dollar falls -1.01% against the Ringgit this Wednesday and is now trading at 4.6700. The downward movement comes amid the release of Producer Price Index (PPI) data for the month of October, which came in much lower than expected (-0.5% real against +0.1% forecast). The PPI measures the variation in the price of goods and services used by companies to produce their products and is therefore a measure of inflation at the beginning of the production chain. A decrease in the PPI reading ends up reflecting on inflation as a whole and lower than expected readings tend to be negative for the USD. From a technical point of view, as USDMYR managed to break below 4.7000, it is possible that it could fall to the 4.6350 region in a few days. Investors should pay attention to the release of data from Initial Jobless Claims and the Philadelphia Fed Manufacturing Index.
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© 2019 High Leverage FX - All Rights Reserved.