The market is a device for transferring money from the impatient to the patient
USD
EUR/USD
The Shared currency crumbled to a 16-month low of $1.1353 and currently trading at $1.1379 after ECB Lagarde’s hinted that the conditions for a rate hike are unlikely to be met in 2022, providing support to the dovish sentiments in markets, EU GDP data eyed.
GBP/USD
The Cable ticked down to $1.3423 as investors focused on talks over post-Brexit trade arrangements for Northern Ireland as well as the likelihood of the Bank of England raising rates next month.
USD/JPY
The Japanese yen lost ground to 114.15 against the greenback as the market awaits U.S. retail sales data.
AUD/USD
The Aussie dollar unbothered at $0.7349 although more jawboning from central bank head Philip Lowe who in a speech again pushed back on market pricing for hikes as soon as 2022, arguing inflation was likely to lag well behind spikes seen elsewhere.
USD/CAD
The Canadian dollar strengthened to 1.2518 against its U.S. counterparty on back of local mixed domestic data and Bank of Canada Governor Tiff Macklem cited the economy is moving closer to full capacity.
USD/ZAR
South Africa's rand rose to 15.24 per U.S dollar, buoyed by improving global sentiments as upbeat Chinese economic data eased concerns about a slowdown in the world's No.2 economy.
USD/MUR
The dollar-rupee shot up by 10 cents to 43.50(selling) on the local market.
14:00 - EUR - GDP (YoY)(Q3)
17:30 - USD - Core Retail Sales (MoM)(Oct)
17:30 - USD - Retail Sales (MoM) (Oct)
20:10 - EUR - ECB President Lagarde Speaks
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.
