The US Dollar is up 0.98% against the Ringgit and is now trading at 4.3010, its highest price in recent days. The upward movement comes after the release of the US Non-Farm Payroll (NFP), on Friday, which brought a reading well above expectations (517k real against 185k forecast). The NFP measures the amount of jobs that were created in the US in the last month excluding the agricultural sector and the importance of this indicator lies in the fact that it is the best way to understand the situation of the US labour market. As the Federal Reserve (FED) aims to keep inflation under control and at the same time generate an economic environment that is favourable to job creation, a reading so much higher than expected shows that the FED still has room to increase the interest rate to contain inflation. So it can be said that in recent days the market has believed in a more hawkish position on the part of the FED. This belief can be confirmed or denied in the interview that Fed Chairman Jerome Powell will give later on the next steps in monetary policy. From a technical point of view, USDMYR can move up to 4.3650 where it should find temporary resistance.
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© 2019 High Leverage FX - All Rights Reserved.