After wide moves in the markets, the US Dollar is up 0.02% against the Ringgit and is now trading at 4.2300. The release of Core Retail Sales data for March brought a higher-than-expected reading (1.1% actual against 1.0% forecast). Although this reading is not much higher than expected, it shows how the economy is heated in the US and accentuates the concern about inflation. The Initial Jobless Claims brought in a slightly higher than expected reading (185k real against 171k forecast) and this is normally negative for USD. However, 185k is below the average for Initial Jobless Claims before the start of the pandemic. In other words, even with a reading above expectations, this is still quite low, showing that the employment situation in the US is favourable and therefore potentially inflationary. From a technical point of view, as the candlestick on the daily chart shows an important shadow to the downside, this is possibly an entry of buying pressure, which could make the USDMYR to rise to 4.2450 level over the next few days.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.