The US Dollar is up +0.65% against the Ringgit on Monday and is now trading at 4.6150. The upward movement takes place on a day of low volatility in the market due to a weak macroeconomic agenda. Investors got excited for the USD on Friday as the Producer Price Index (PPI) reading came in higher than expected. The PPI measures inflation from a business perspective, as it measures the change in the price of goods sold by manufacturers. Higher inflation for producers ends up being passed on to consumers, which may put pressure on the Federal Reserve (FED) to raise interest rates in the future. As today there was no important macroeconomic news, the market is moving in the direction of Friday. From a technical standpoint, USDMYR is approaching a resistance region on the daily chart at 4.6250. Investors should pay attention to the release of Core Retail Sales data for tomorrow, as this may confirm the idea of a possible scenario of higher inflation in the US over the next few months.
