The hard part is discipline, patience and judgement
USD
EUR/USD
The Shared currency plummeted to $1.1442 as investors are ramping up bets on whether the U.S. Federal Reserve will hike interest rates earlier than expected and pricing the first rate hike by July 2022.
GBP/USD
The Cable dived to $1.3368 after U.K's economy grew less than the Bank of England forecast, and consumer spending showed signs of weakening, leaving the chances of an interest-rate increase in December in the balance.
USD/JPY
The Japanese yen extended losses to 114.17 against the U.S dollar after Japan’s Economy Minister Daishiro Yamagiwa said new COVID-19 measures will aim to both prevent the virus spread and keep economic and social activities going.
AUD/USD
The Aussie dollar extended downward pressure to $0.7291 while half the Australian economy is still in Covid-triggered lockdowns.
USD/CAD
The Canadian dollar sustained the down run to 1.2578 against the U.S dollar on the back of the Fed rate hike chatters and sluggish prices of Canada’s main export item, WTI crude oil.
USD/ZAR
South Africa's rand firmed at 15.29 per U.S dollar while local bond yields edged lower after the government pledged to cut the budget deficit and curb debt in its mid-term budget.
USD/MUR
The dollar-rupee rose by 5 cents to 43.20(selling) on a strong U.S dollar.
19:00 - USD - JOLTs Job Openings (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.
