The USD has been sideways against the Ringgit for the past few days and is now trading at 4.1865. Last week Fed’s chairman Jerome Powell reassured global markets that the tapering process will start in November, but that the interest rate for the USD will not increase until 2023. Consumer Confidence, due today, may provide more information on the economic recovery in the US and that could give a hint the path of the tapering process. From a technical point of view, the USDMYR is sideways between the levels of 4.1930 and 4.1770. If the price breaks above 4.1930, it could rise to 4.2370. On the other hand, if it breaks down from 4.1770, it could drop to 4.1350 in a few days.
The US Dollar is gaining power against the Singapore Dollar this Tuesday and is now trading at 1.3550. Singapore begins to discuss the full reopening of its borders and it is speaking with some other nations about increasing vaccinated travel lanes, possibly by the end of 2021. This may cause some buying force in the SGD. The Fed’s announcement last week that it intends to start the tapering process later this year, but that it will do so smoothly, caused peace of mind in the global market and that’s why the USDSGD didn’t move much on this Monday. From a technical point of view, if the USDSGD breaks above the 1.3550 level, it could rise to 1.3700 in a few days.
