USDMYR Technical Analysis

The US Dollar rose 0.12% against the Ringgit on Friday and is now trading at 4.2165. The bullish movement is due to the release of Initial Jobless Claims data, which came in much lower than expected (166k real against 200k forecast). This 166k reading is extremely low and very favourable for the US Dollar. Analysts are already starting to point out that the next US unemployment rate reading is likely to drop to 3.4 or 3.3%. The employment scenario is important because it helps to understand the Fed’s possible next steps in the monetary policy. From a technical point of view, USDMYR remains trapped in a sideways lateralization, but above the interest level at 4.2050. The breakout of the round number 4.2200 could make room for the price to rally up to 4.2300 in a few days.