I know where I am getting out before I get in.
The single currency hovered above $1.12 after minutes from the European Central Bank's October meeting showed most policymakers leaning toward the continued stimulus and a cautious approach to any policy changes.
The pound sterling slipped to a new 11-month low of $1.33 on news that Britain was concerned by a newly identified coronavirus variant spreading in South Africa that might make vaccines less effective.
The safe-haven yen rallied to 114.73 per dollar on a cautious mood after Britain raised the alarm over a newly identified coronavirus variant spreading in the African nation.
The loonie tumbled to 1.2710 per dollar as oil prices slid more than 2% on Friday on concerns that a global supply surplus could swell in the first quarter following a U.S.-led coordinated release of crude reserves among major consumers.
The risk-sensitive Australian dollar slammed to a three-month low of $0.71265, shrugging off a much-better-than-expected climb in retail sales.
The South African rand bogged down to 16.22 against the greenback as domestic producer inflation rose to 8.1% year on year in October, enlightening about price pressures in Africa's most industrialized economy.
The local pair edged higher by 5 cents to 43.55 on the Mauritian forex market.
11:30 - 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.