In the business world, the rearview mirror is always clearer than the windshield.
USD
EUR/USD
The single currency rebounded from a one-month low at $1.1683 to $1.1743 after U.S. initial jobless claims registered 351,000 in the week ending Sept. 18, following an upward revised level of 335,000 in the prior week.
GBP/USD
Sterling jumped out of the blocks to $1.3750, up 0.99% on the day, following the Bank of England monetary policy announcement on Thursday, where it kept its interest rate unchanged at 0.1%. Still, two of its MPC policymakers had voted for an early end to pandemic-era government bond-buying.
USD/JPY
Japanese Yen nosedived to 110.44 per dollar on improved risk appetite as Beijing injected fresh cash into its financial system ahead of an $83.5 million bond coupon by embattled property giant Evergrande.
USD/CAD
Loonie surged to a high of 1.2635 per dollar, supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.
AUD/USD
The Aussie retreated from daily highs at $0.7316 to $0.7296 in the wake of the International Monetary Fund’s downgrade of Australia's GDP forecast for 2021.
USD/ZAR
South African rand slumped from a high of 14.55 to 14.75 against the greenback after the South African Reserve Bank left the key interest rate unchanged at a record low of 3.5%, saying the risks to the short-term inflation outlook were assessed to the upside.
USD/MUR
The dollar-rupee wallowed at 42.85(selling) on the local market.
12:00 - EUR - German Ifo Business Climate Index (Sep)
18:00 - USD - Fed Chair Powell Speaks
18:00 - USD - New Home Sales (Aug)
The pound sterling is hovering near its one-month low around 1.3620 ahead of FOMC and BOE monetary policy meetings. The pound met with some fresh supply in the zone 1.3670-80 which could be a key resistance in the near term followed by 1.3800.
On the technical side, GBPUSD appears to be moving in a consolidation zone. As per Elliott wave principle, it appears that GBPUSD is currently riding a wave B ( triangle) of a corrective move A-B-C which could put more pressure to the downside in the near term.
A break and close of 1.3600 opens the door towards 1.3100 in the medium term. A breach of wave A of triangle (1.3980) invalidates the move and can be bullish in the medium term.
