The US Dollar gained some ground against Ringgit this Thursday, but is still stuck within the sideways lateralization, being quoted at 4.1830. After the announcement of the ADP Nonfarm Employment Change data, which came in higher than expected (568k real against 428k forecast), the Dollar appreciated a little against its counterparts and against the Ringgit. Still, official Non-Farm Payroll data will be confirmed on Friday and should the NFP come in higher than expected, this could confirm a possible new bullish trend in USDMYR. From a technical point of view, the most important interest level is still 4.1930, whose upward break could pave the way for the USDMYR to rise to 4.2400 in a few days.
The US Dollar has been in an uptrend against the Indian Rupee since the 31st of August and today it showed what appears to be a fake breakout of a major resistance zone, trading at 74.7580. Since the announcement of the beginning of the tapering process, scheduled for November, the Dollar has gained value against several of its counterparts, among them the Indian Rupee. The failure to break the resistance is due to indecisive market sentiment because of the Non-Farm Payroll data, to be released on Friday. If the NFP reading comes higher than expected, this can make the Dollar gain more value against the INR. On the Indian side, the interest rate decision, scheduled for Friday, could cause strong volatility in the market. Should the interest rate remain unchanged, it is likely that the USDINR will gain strength to continue its upward movement.
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© 2019 High Leverage FX - All Rights Reserved.