The US Dollar remains sideways against the Ringgit on Wednesday and is now trading at 4.4020. The recent indecision movement can be seen in the formation of a sideways channel, which keeps the price between the 4.4360 and 4.3850 levels. The sentiment of indecision is also a reflection of the low volatility characteristic of the end of the year, when many financial market professionals take some days off to get together with their families for Christmas and New Year. From a macroeconomic point of view, Malaysia shows good numbers of economic recovery after the Covid-19 crisis. Malaysia’s unemployment rate is currently the lowest since February 2020, at 3.6%. Just by way of comparison, unemployment in the US is at 3.7%. These numbers point to a possible appreciation of the MYR against the USD over the coming months. From a technical point of view, USDMYR needs to break above 4.4360 or below 4.3850 before setting a more precise direction.
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© 2019 High Leverage FX - All Rights Reserved.