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USD
EUR/USD
The Shared currency meandered at $1.1607, with investors watching out for ECB's stance on rising global consumer prices and any clarity on the outlook for its ultra-easy policy stance during its policy meeting later today.
GBP/USD
The Cable extended its downtrend to $1.3744 despite U.K.'s finance minister Rishi Sunak's upbeat economic assessment while presenting the annual government budget yesterday.
USD/JPY
The Japanese yen vaulted to 113.53 versus the greenback after the Bank of Japan kept monetary policy settings steady earlier today and projected inflation to stay below its 2% target for at least two more years.
AUD/USD
The Aussie dollar firmed at $0.7511 as investors shrug off the risk-off market mood amidst rising bets of an earlier rate hike by the Reserve Bank of Australia.
USD/CAD
The Lonnie spiked to a high of 1.2300 yesterday before trimming back gains to 1.2370 this morning. On Wednesday, The Bank of Canada signalled it could hike interest rates as soon as April 2022 and said inflation would stay above target through much of next year due to higher energy prices and supply bottlenecks.
USD/ZAR
The South African rand tumbled to 15.08 versus the greenback, undermined by a stronger U.S. dollar and ahead of S.A.'s September PPI figures to be released later today.
USD/MUR
The dollar-rupee stands still at 43.05(selling) on the local market.
11:55 - EUR - German Unemployment Change (Oct)
15:45 - EUR - Deposit Facility Rate (Oct)
15:45 - EUR - ECB Interest Rate Decision (Oct)
15 :45 - EUR - ECB Monetary Policy Statement
16:30 - USD - GDP (QoQ) (Q3)
16:30 - EUR - ECB Press Conference
16:30 - USD - Initial Jobless claims
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.
