Losses are necessary, as long as they are associated with a technique to help you learn from them
USD
EUR/USD
The Shared currency nosedived to $1.1476 after U.S. consumer prices surged to their highest rate since 1990, fueling speculation that the Federal Reserve may raise interest rates sooner than expected.
GBP/USD
The British pound collapsed to $1.3410 on Brexit woes as the UK and the EU look far from reaching a post-Brexit agreement over Northern Ireland.
USD/JPY
The Japanese yen slammed to 113.95 per U.S dollar after Evergrande news improved mood after avoiding default for a third time and amid a closed U.S market.
AUD/USD
The Aussie dollar tumbled to $0.7307 on the back of Australia's employment data earlier in the day showed a contraction in the month of October.
USD/CAD
The Loonie faded to 1.2509 against a stronger U.S dollar and coupled with a drop in oil prices.
USD/ZAR
The South African rand cascaded to 15.41 per U.S dollar as domestic power cuts continued to weigh on investor sentiment.
USD/MUR
The dollar-rupee climbed by 5 cents to 43.15(selling) tracking the greenback's strength.
11:00 - GBP - Manufacturing Production (MoM) (Sep)
11:00 - GBP - GDP (YoY) (Q3)
14:00 - EUR - ECB Forecast
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.
