The US Dollar rose slightly against the Ringgit on Friday and is now trading at 4.4040. The recent bullish move follows the release of Initial Jobless Claims data, which came in slightly higher than expected (229k real against 227k forecast). Even as this macroeconomic indicator is released every Thursday, the market has been decreasing its sensitivity to this information in the last months. There is also the fact that the actual number came very close to what was expected. The real impact on USDMYR appears to have come from Fed Chairman Jerome Powell’s statement on Thursday that the Fed’s commitment to maintaining price stability is unconditional. Among other things, he said the Fed would use all its resources to control the highest inflation in 40 years and that a recession could be on the way. From a technical point of view, USDMYR has not yet been able to break through the resistance region that marks the 2020 high. If the price manages to break below 4.3950, it could drop to 4.3400 in a few days. Even so, at this moment, the main driver of the market continues to be the macroeconomic elements.
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© 2019 High Leverage FX - All Rights Reserved.