DislikedUh Macroeconomics topic again. I love it! Let me explain this in a simple term.
Just imagine USD is seriously loosing value and Ringgit Malaysia strengthening so much. As we know... USA is our BIGGEST trade partner. Let say we are exporting "cincalok/belacan" over there. What would the price be? Of cause getting more expensive isn't it? Thus... lead to less demand. At the end hurting the factory producing "cincalok/belacan". One more thing... imagine what gonna cost US Investor to open up a factory here in Malaysia? With rising Currency rate against them... more expensive labour... They would think twice to make a business here.
Since Malaysia has no significant impact to the world economy scope. Take JAPAN for an example. The CAR manufacturing business. Can US consumer later on afford to buy Mitshubishi OR Nissan OR Toyota with the rising price? Thus... can't see much "drifting" action in USA :. Surplus and expensive is a recepy for disaster. Demand will deteriorate significantly. Japan will suffer.
It's a VISCOUS CYCLE / CIRCLE.
Bdw, drawing a channel.. i think, supposedly the price projection for cable shoot be way to the north...
Take a look on this geepy 4H chart...