The markets are unforgiving, and emotional trading always results in losses.
The Single currency knocked down to $1.1774 on recent risk aversion that gave the greenback a boost ebbed and ahead of the European Central Bank (ECB)’s latest policy decision.
The British pound weighed down to $1.3614 by Brexit woes amid reports that the UK will threaten this week to deviate from the Northern Ireland Protocol of the Brexit deal and a surge in infections in the UK caused largely by the highly contagious Delta variant of the coronavirus also acted as a headwind for the sterling.
The Japanese yen lost ground to 109.89 per U.S dollar although Japanese trade data released earlier in the day said exports grew 48.6% year-on-year, a fourth consecutive month of double-digit gains, and imports grew 32.7% year-on-year in June.
The Aussie dollar was down to $0.7310, with Australia’s latest retail sales figures falling 1.8% month-on-month.
The Loonie trimmed losses to 1.2707 against the U.S dollar on the back of modest rebound of the barrel of West Texas Intermediate.
South Africa's rand slipped to 14.67 versus the greenback as the fast spread of the Delta coronavirus variant made global investors nervous and drove a continued flight to safer assets.
The dollar-rupee climbed by 5 cents to 43.05(selling) on the Mauritian market.
18:30 - USD - Crude Oil inventories
EURGBP appears to be riding into a corrective wave A-B-C after completing 5 waves to the downside. Yesterday, we observed an impulsive break out of wave B channel which could lead EURGBP towards final wave C as per Elliott wave analysis. we remain bullish on EURGBP with stop loss below 0.8500 targeting 0.8757 , 0.8826 and ultimately 0.8915.
After rallying towards a high of 156.07 end of May 2021, we saw a three wave corrective move to the downside in GBPJPY which possibly could be the end of a corrective wave A-B-C before a new high is formed or possibly part of a larger corrective combination wave W-X-Y as per Elliott wave perspective.
127% appears to be good level for short term rebound to the upside.
Approaching 149.00/149.10 could be an opportunity to long the market with stop below 148.30 with targets levels 150 , 150.71 and 151.70.