The US Dollar rose against the Ringgit on Tuesday and is now trading at 4.2020. The bullish move comes amid anticipation of a possible rise in the US Dollar interest rate on March 16. Analysts predict that the Fed will raise the interest rate from 0.25% to 0.50%. This hike is seen as a way to contain inflation in the US. If this actually happens, the US Dollar has a high power of appreciation in the short and medium term, as investors will be more cautious when buying risky assets, preferring fixed income bonds. From a technical point of view, if USDMYR manages to break above 4.2065, it could signal the resumption of the uptrend, which could take the price up to 4.2400 in a few days. A breakout below 4.1740 looks unlikely at this point.
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© 2019 High Leverage FX - All Rights Reserved.