The Dollar opened with a bearish gap against Ringgit but has already started to show buying strength this Friday and is now trading at 4.1525. For the Dollar, the Initial Jobless Claims data came in well below expectations (293k real against 319k forecast) while the Producer Price Index data came in slightly above expectations (0.6% real against 0.5% forecast). The combination of these two news may cause a strengthening of the Dollar against Ringgit in the coming days. If Retail Sales data come in higher than expected this Friday (-0.2% forecast) it could cause an ignition move in the USD. From a technical standpoint, the USDMYR has fallen sharply over the past few days and is now close to a support region. If the price manages to break above 4.1600, it could rise to 4.1930 and 4.2400 in a few days.
The US Dollar continues to lose ground against the Singapore Dollar this Friday and is now trading at 1.3485. The Initial Jobless Claims data came in slightly lower than expected, which could be positive for the US Dollar. Still, USDSGD remains in a slight decline and the market appears to be waiting for Core Retail Sales data for the US, which could set the market’s direction in the coming days. If the tapering process does start in November, it could cause the USD to start gaining strength in the next few days. From a technical point of view, the USDSGD may drop as low as 1.3400, where it is likely to find some support.
