The US Dollar remains with low volatility against the Ringgit and is now trading at 4.4100. The low movement of the market can be explained because investors were awaiting the release of data from the US Consumer Price Index (CPI) for the month of March. The CPI measures the change in the price of goods and services from the perspective of the consumer. It is a keyway to measure changes in purchasing trends and inflation. The reading released today came in lower than expected (5% actual versus 5.2% forecast). This shows that the actions of the Federal Reserve (FED) regarding inflation in the US have had a positive effect. Control inflation while keeping the unemployment rate under control is one the aims of the FED. A lower-than-expected reading tends to cause the USD to weaken, as the Fed may end up adopting more lenient monetary measures. From a technical point of view, USDMYR could drop as low as the 4.3650 region, where it might find temporary support.
