The US Dollar continues to slowly rise against the Ringgit on Wednesday and is now trading at 4.6430, the highest price since 1998. Producer Price Index (PPI) data brought the EUR an astonishingly high reading (43.3%). The PPI measures the change in the price of goods, products and services used by companies to produce their products. Therefore, the PPI measures inflation at the beginning of the production chain, which ends up falling on the consumer price. When PPI inflation is not passed on to customers, this ends up putting companies at risk, as they will reduce their profit margins to remain competitive. When PPI inflation is too high, it can close businesses, which in turn increases unemployment. This inflation scenario in Europe was exacerbated by the energy crisis caused by Russia’s conflict with Ukraine and ends up having an effect on the entire market, which prefers to sell risky assets and buy safer assets. Investors appear to be waiting for data from ADP Non-Farm Employment, which will provide more insight into the health of the US economy. From a technical point of view, USDMYR is in the region of all-time highs and a sell-force ignition should begin soon.
USDMYR Technical Analysis
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