The Dollar made a broad bullish move against Ringgit this Wednesday and is now trading at 4.1695. As the next FOMC meeting approaches (scheduled for November 2nd and 3rd), the market is already starting to price the possible start of the tapering process. If the reduction in financial stimulus actually starts in November, it could cause the beginning of a long uptrend in the Dollar for the next few months or even years. On the part of Ringgit, the Consumer Price Index data scheduled for Friday may give a good direction of inflation in Malaysia. If the reading comes in higher than expected, this could strengthen the MYR a little. From a technical point of view, if the USDMYR manages to break above 4.1950, it could rise to 4.2400 in a few days.
The US Dollar fell against the Singapore Dollar on Wednesday, hitting a 30-day low to trade at 1.34548. Finally, the curve of new infections by the delta variant of Covid-19 starts to decrease in Singapore and this has caused the SGD to recover a little against the US Dollar. The Initial Jobless Claims data, to be released on Thursday, may give a good direction for the USD as the Fed is also guided by this data to make decisions on US monetary policy. The most important decision right now is to start or delay the tapering process, scheduled for November. From a technical point of view, the USDSGD is close to the Simple Moving Average of 200 periods, which can act as a support. If the price manages to break above 1.3530, it could rise to 1.3690 in a few days.
