Frankly, I don’t see markets; I see risks, rewards, and money.
USD
EUR/USD
The Shared currency jumped to a 3-month high of $1.1647 on weaker-than-expected U.S. factory data, coupled with increasing bets that monetary policy will normalize faster in other countries also contributed to the U.S. currency's losses.
GBP/USD
The Cable shot up to $1.3770 after Bank of England Governor Andrew Bailey sent a fresh signal that the central bank is gearing up to raise interest rates as inflation risks mount.
USD/JPY
The Japanese yen rebounded to 114.20 against the U.S dollar in the face of disappointing American's Industrial production data on Monday tempered hawkish U.S Federal Reserve's expectations.
USD/CAD
The Canadian dollar extended its steady rally to 1.2344 per U.S dollar as the recent bullish solid run in crude oil prices continued underpinning the commodity-linked loonie.
AUD/USD
The Aussie dollar soared to $0.7457 on the back of hawkish minutes from the Reserve Bank of Australia, higher commodity prices and a risk-on mood across the board.
USD/ZAR
South Africa's rand caught fresh bids at 14.62 against the greenback despite soft economic data in China, the country's largest trading partner.
USD/MUR
The dollar-rupee stayed put at 43.05(selling) this morning.
16:05 - GBP - BoE Gov Bailey Speaks
16:30 - USD - Building Permits (Sep)
The dollar Index extends its intense rebound near the 94.00 threshold, clinching a new high for this year 2021 amid an earlier rate hike expectation and announcement of a nearing tapering asset purchase which clearly impacted the yield curves.
A tightening of monetary policy by the European Central Bank remains far in the future but ECB remains vigilant on its inflation figures yet to be released this Friday. This could give additional upward momentum on the USD in the near term and exerts additional selling pressure on the euro and the pound.
On the technical side, after a breach and close above the 100% retracement A-B-C (93.72 level) ,the greenback could easily approach the 113% level at 94.38 followed by 127% level – 94.98 level in the near term. Resistance at 96.47 (161.8%) remains key level to watch
1.3750 marked the completion of ‘wave e’ of the triangular retracement (wave B) of corrective move A-B-C for GBPUSD and abruptly, we saw fresh sellers entering the market below the 1.3600 levels yesterday.
As per Elliott wave principle, GBPUSD is battling around 1.3515 levels and higher inflation, Brexit and Petroleum concerns could exert further pressure on the pound towards 1.32 levels towards completion of wave C.
A breach and close above 1.3750 nullify this downward pattern.
