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USD
EUR/USD
The shared currency remained depressed at $1.1578 amid divergence between the ECB and the US Fed's stance on tapering and optimistic economic data. Investors are waiting for inflation data in the Eurozone later today.
GBP/USD
The Cable ticked up to $1.3455 after UK’s Gross Production rose by 5.5% more than expected but remains weak due to rising energy prices, worker shortage and stagflation.
USD/JPY
The Japanese yen gained to 111.15 versus the greenback on its safe-haven appeal, despite concerns over the pace of economic recovery in China and Japan.
AUD/USD
The Aussie dollar trickled to $0.7209 on downbeat Australian economic data earlier today.
USD/CAD
The Loonie gained some traction to 1.2724 against the U.S dollar on the back of early rate hike expectations from the Bank of Canada, Canadian GDP eyed.
USD/ZAR
South Africa's rand hardly budged at 15.11 per U.S dollar although data from S.A's revenue service showed the trade surplus widened to 42.4 billion rand in August, versus economists' predictions for a 39.0 billion rand surplus.
USD/MUR
The local pair unbothered at 42.95(selling).
12:30 - GBP - Manufacturing PMI (Sep)
13:00 - EUR - CPI (YoY) (Sep)
16:30 - CAD - GBP (MoM) (Jul)
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.
