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USD
EUR/USD
The Shared currency dived to $1.1583 on sluggish prints of October's final manufacturing PMIs for Germany, France and the Eurozone, while receding chatters over the European Central Bank's tighter monetary policy weighed heavily on the Euro.
GBP/USD
The Pound Sterling hammered to $1.3629 on growing uncertainty about whether the Bank of England will raise interest rates at its policy meeting on Thursday.
USD/JPY
The yen lost ground to 113.84 against the greenback on a closed Japanese market ahead of today's Federal Reserve policy meeting. Markets expect U.S policymakers to announce their intentions to begin tapering their USD 120 billion monthly bond purchases.
AUD/USD
The Aussie dollar plunged to $0.7437 after the Reserve Bank of Australia (RBA) left interest rates unchanged at 0.10% and abandoned its yield curve control. The RBA also repeated that rates would remain low, seeing the Australian dollar finish as the worst-performing major on Tuesday.
USD/CAD
The Canadian dollar tumbled to1.2417 against its U.S. counterpart this morning, as oil prices fell and investors grew cautious ahead of an expected reduction of economic stimulus by the Federal Reserve.
USD/ZAR
South Africa's rand languished to 15.40 per U.S dollar on a broad-based sell-off across emerging market currencies, as investors bet elevated U.S. inflation could lead the Federal Reserve to tighten policy sooner than signal.
USD/MUR
The dollar-rupee climbed by 5 cents to 43.10(selling) on U.S dollar strength before the Federal Open Market Committee meeting tonight.
13:30 - GBP - Services PMI
13:30 - GBP - Composite PMI
16:15 - USD - ADP Nonfarm employment change (Oct)
18:0 - USD - ISM - Non-Manufacturing PMI (Oct)
18:30 - USD - Crude Oil Inventories
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.
