The US Dollar is up +0.31% against the Ringgit on Monday and is now trading at 4.5370. Despite the bullish move, the main market sentiment is one of indecision as USDMYR surged as high as 4.5585 earlier in the session, only to drop again later in the day. The USDMYR has already accumulated a drop of -3.17% since the 30th of June and the downward movement can be explained due to good numbers that point to a decrease in inflation in the USA, which may cause the Federal Reserve (FED) to ease monetary policy over the next few meetings. From a technical point of view, USDMYR made the downward move and hit the region of 4.5250, as predicted a few days ago. The current price region (4.5370) is a confluence of factors that may favour an upward movement, albeit small, over the next few days. Investors should beware of the release of the US Core Retail Sales data tomorrow, as this indicator will give hints of US domestic consumption, which is an important driver of inflation.
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© 2019 High Leverage FX - All Rights Reserved.