Don't be afraid to give up the good to go for the great
The Shared currency initially dipped to $1.1771 before bouncing to $1.1856 after the Federal Reserve kept interest rates and the QE program unchanged last night, while Fed's Chairman Powell failed to set a timeline for tapering Fed asset purchase in his statement.
The Pound soared to $1.3938 on reports that UK's coronavirus infections dropped for the seventh consecutive day, raising confidence in the U.K. economic recovery.
The Japanese yen spiked to 109.70 per U.S dollar, underpinned by the latest insistence from Federal Reserve chairman Jerome Powell that U.S. rate increases are still far off.
The Aussie modestly gained to $0.7384 though it has been held back by a lengthening lockdown in Australia's most populous city of Sydney.
The Loonie spiked to 1.2480 versus the greenback on news that the U.S Federal Reserve will establish separate domestic and international standing repo facilities to backstop money markets during times of stress, while Canadian's national data showed annual inflation easing in June.
The South African rand extended gains to 14.70 versus the greenback aided by dovish Powell briefing and a rise in risk appetite, weighed heavily on the appeal of the U.S dollar.
The dollar-rupee idled at 42.95 (selling) unfazed by international movements.
11:55 - EUR - German unemployment Change (Jul)
15:30 - EUR - ECB Publishes Account of monetary policy meeting
16:30 - USD - Initial Jobless Claims
16:30 - USD - GDP (QoQ) (Q2)
18:00 - USD - Pending Home Sales (MoM) (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.