He who has a why to live for can bear almost any how.
The euro bolstered to $1.1800 despite a survey from the Ifo Institute showed German business morale fell unexpectedly in July on continuing supply chain worries and rising COVID-19 infections.
Sterling surged to $1.3825 as coronavirus infections in Britain receded, despite PM Johnson-led government rejected the European Union’s efforts to placate tensions over the Northern Ireland protocol as the UK demands renegotiation of the Brexit deal.
Japanese yen soared to 110.20 per dollar, triggered by the global flight to safety, over worries that the spread of the highly contagious Delta variant of the coronavirus could derail the global economic recovery.
The Loonie wiggled near 1.2550 against its U.S counterpart, ahead of the release of the Core Consumer Price Index by the Bank of Canada on Wednesday.
Aussie inched higher to $0.7374, as Victoria is up for easing the lockdown restrictions recording the lowest daily infections since July 15. Comments from RBA Assistant Governor Debelle at 16:35 eyed.
South Africa's rand recovered from early losses on Monday from 14.99 to 14.78 per dollar, with concerns over rising COVID-19 infections setting a cautious tone in global markets ahead of the U.S. Federal Reserve's two-day meeting today.
The local pair remained unchanged at 42.95(selling) on the Mauritian market.
16:30 - USD - Core Durable Goods Orders (MoM)(Jun)
18:00 - USD - CB Consumer Confidence (Jul)
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.