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USD
EUR/USD
The Single currency dived to $1.1605 on increased expectations for a reduction in the U.S. Federal Reserve's asset purchases starting in November and an interest rate hike, possibly in late 2022.
GBP/USD
The Cable hammered to $1.3451 as concerns remain about soaring natural gas prices alongside petrol shortages in the U.K. that have lasted almost a week.
USD/JPY
The Japanese yen tumbled to 111.90 against the U.S dollar after Bank of Japan's Governor Haruhiko Kuroda cited weak consumption and lower inflation putting Japan’s economic growth on the backburner.
AUD/USD
The Aussie dollar lost ground to $0.7250 following the downbeat China official PMI data for August earlier today.
USD/CAD
The Loonie pressured down to 1.2729 against its U.S. counterpart as oil prices fell and the greenback posted broad-based gains.
USD/ZAR
The South African rand ticked down to 15.11 verus the greenback on increased expectations that the U.S. Federal Reserve will tighten monetary policy.
USD/MUR
The dollar-rupee rose by 5cents to 42.95(selling) on the local market.
10:00 - GBP - GDP (YoY) (Q2)
10:00 - GBP - GDP (QoQ) (Q2)
11:55 - EUR - German Unemployment Change (Sep)
16:30 - USD - GDP (QoQ) (Q2)
18:00 - USD - Fed Chair Powell Testifies
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.
