Don’t blindly follow someone, follow the market and try to hear what it is telling you
USD
EUR/USD
The Shared currency slipped to $1.1602 following German October IFO data dropped by more than anticipated, and on expectations for a slightly dovish ECB meeting on Thursday.
GBP/USD
The Pound nursed losses at $1.3760 after remarks from Bank of England member Silvana Tenreyro who said she was in no hurry to begin rate hikes, amid recent data misses in the U.K.
USD/JPY
The Japanese yen pared previous day gains to 113.97 against the U.S dollar, although Japan’s Producer Price Index for September came above forecast.
AUD/USD
The Aussie dollar shot up to $0.7511 after Australia’s Business Confidence data jumped the most in 2021 earlier today.
USD/CAD
The Loonie dropped to 1.2377 versus the greenback after Crude oil retreated from fresh 7-year highs, Bank of Canada monetary policy meeting eyed.
USD/ZAR
The South African rand firmed at 14.70 against the U.S dollar, supported by higher precious metals prices, while stocks slightly edged lower.
USD/MUR
The dollar-rupee stayed put at 43.05(selling) on the domestic market, unfazed by international movements.
18:00 - USD - CB Consumer Confidence (Oct)
18:00 - USD - New Home Sales (MoM) (Sep)
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.
