After a broad bullish move that lasted 40 days, the Dollar has now been sideways against the Ringgit since last Wednesday and is now trading at 4.2300. The recent upward move in the dollar is due to the fact that the rise in inflation is showing that the Fed will likely need to raise interest rates sooner than expected. Now the market is moving sideways while traders who bought dollars throughout the month of June take profit. This Monday the New home sales brought a lower-than-expected number, which tends to be negative for the Dollar. This news had an impact on the intraday price action, holding the dollar to continue to gain ground against the Ringgit. On Tuesday, the most expected data by the market is the Consumer Confidence for the US, which can show how the American consumer sees this inflation scenario. From a technical point of view, the USDMYR is likely to fall as far as 4.1750, where it may find an important area of support.
The dollar lost ground against the Singapore Dollar this Monday after the release of the US New Home Sales data and is now trading at 1.3570. The Industrial Production for Singapore also came in higher than expected, which helped strengthen the SGD. Since concerns about inflation in the US began to grow, the US dollar has been gaining strength against other currencies, due to the possible rise in the interest rates. After this upward movement, investors seem to be taking profits and this could accelerate the devaluation of the US dollar in the coming days. From a technical point of view, it is possible for the USDSGD to fall as far as the 1.3480 level, where it can find support and resume the uptrend.
