The fundamental law of investing is the uncertainty of the future.
USD
EUR/USD
The Single currency sidelined at $1.1649 as the market awaits the German Inflation Rate and Eurozone Consumer Price Index later today.
GBP/USD
The Cable lifted to $1.3808 on BoE rate hike prospects although UK CPI missed estimates.
USD/JPY
The Japanese yen rumbled to 114.54 against the U.S dollar on back of a global shares rally that decreased demand for safe-haven assets.
AUD/USD
The Aussie dollar sailed higher to $0.7491 on easing coronavirus fears at home.
USD/CAD
The Loonie traded flat at 1.2342 versus the greenback although upbeat prices of Canada’s key export item, WTI crude oil.
USD/ZAR
South Africa's rand rose to 14.52 per U.S dollar, gaining back some ground lost a day earlier thanks to a softer dollar.
USD/MUR
The dollar-rupee stayed idled at 43.05(selling) this morning.
13:00 - EUR - CPI (YoY) (Sep)
16:30 - CAD - Core CPI (MoM) (Sep)
18:30 - USD - Crude Oil Inventories
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.
