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USD
EUR/USD
The euro lingered around $1.1300 despite U.S. Federal Reserve Chairman Jerome Powell's comments on the need to tame inflation bolstered bets for faster monetary policy tightening.
GBP/USD
Sterling wobbled at $1.3287 on reports that Irish Foreign Minister Coveney signalled no Brexit deal over the Northern Ireland protocol during 2021, while Northern Ireland Secretary Lewis is optimistic about reaching an agreement but also cited the odds of triggering Article 16.
USD/JPY
The Japanese yen firmed around 113.09 against the greenback, amid cautious sentiment ahead of the US Nonfarm Payrolls data for November.
USD/CAD
The Canadian dollar seesawed around 1.2823 per dollar, waiting for fresh impetus from the Canadian employment report for November today.
AUD/USD
The risk-sensitive Australian dollar plummeted to $0.7064 after the spread of the Omicron variant clouded the outlook for global growth just as markets were pricing at a faster pace of U.S. rate hikes.
USD/ZAR
The South African rand ticked down to 15.96 per dollar as the Omicron coronavirus variant established itself as the dominant strain in South Africa.
USD/MUR
The domestic pair inched by 5 cents to 43.47(selling) in the FX market.
12:30 - EUR - ECB President Lagarde Speaks
13:30 - GBP - Composite PMI (Nov)
13:30 - GBP - Services PMI (Nov)
17:30 - USD - Nonfarm Payrolls (Nov)
17:30 - USD - Unemployment Rate (Nov)
17:30 - CAD - Employment Change (Nov)
19:00 - USD - ISM Non-Manufacturing PMI (Nov)
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.
