What US inflation data could push the ringgit lower next week?

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US CPI inflation data could push the ringgit lower next week
The US inflation and Consumer Price Index (CPI) data released on Wednesday are expected to influence the ringgit’s direction next week. A high US CPI print could lift US bond yields and strengthen the US dollar, which would likely weigh on the ringgit over the following days. Conversely, a lower US CPI print would ease inflation and risk, reducing dollar pressure on the ringgit.
The specific release is US inflation and CPI data on Wednesday
The market focus is on the US inflation and Consumer Price Index (CPI) data scheduled for release on Wednesday. The expectation for next week’s movement is directly tied to how that CPI figure prints relative to expectations.
A high CPI print could lift bond yields and the greenback
If the US CPI print is high, it could spur a jump in US bond yields. That, in turn, could lift the US dollar, contributing to expectations that the ringgit would trade lower during the next week.
A lower CPI print would ease inflation, risk and dollar pressure
A lower US CPI print would alleviate inflation-related concerns and risk pressures. That would reduce dollar pressure, creating the basis for an opposite move if the CPI comes in lower.
Trading range expectations still point to downside risk
Analysts expected the ringgit to weaken against the US dollar next week within a range of 4.10 to 4.15, with Stephen Innes also expecting it to hover between 4.11 and 4.14. Bank Negara Malaysia noted the ringgit could remain exposed to heightened volatility due to uncertainties around global and domestic economic recovery momentum.

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What US inflation data could push the ringgit lower next week?

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