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USD
EUR/USD
The Shared currency rocketed to $1.1670 after European Central Bank's governor Christine Lagarde on Thursday admitted that inflationary forces in the eurozone will run hot for longer than expected, mainly due to the inability of supply to match the increasing demand. The ECB, as expected, kept its monetary policy unchanged yesterday.
GBP/USD
The Cable surged to $1.3791 as UK Chancellor Rishi Sunak's multi-billion pound 2021 budget and the hawkish Bank of England seem to support the move in the currency; attentions now shift to the monetary policy statement due for next week.
USD/JPY
The Japanese yen muted at 113.64 against the U.S dollar after the contraction of pool Japanese data figures released earlier in the day.
AUD/USD
The Aussie dollar pair raced higher to $0.7552 after today's Australian retail sales grew better-than-expected in the Asia session.
USD/CAD
The Canadian dollar muscled its way to 1.2353 against the greenback buoyed by the hawkish monetary statement by the Bank of Canada on Wednesday and weaker U.S GDP data yesterday.
USD/ZAR
The South African rand extended its losses to 15.14 per U.S dollar as continued power cuts weighed on market sentiment, while traders also turned cautious ahead of local elections and a medium-term budget statement next week.
USD/MUR
The dollar-rupee stayed put at 43.05(selling) on the local market.
13:00 - EUR - CPI (YoY) (Oct)
16:30 - CAD - GDP (MoM) (Aug)
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.
