I know where I’m getting out before I get in.
USD
EUR/USD
Euro crept back to $1.16 after Eurozone inflation accelerated for the third straight month in September and hit the highest level in thirteen years in September.
GBP/USD
Sterling surged to $1.3550, although U.K.'s manufacturing sector saw growth slowing last month on the back of surging material and staff shortages.
USD/JPY
The Yen firmed to 111.04 a dollar, following the Ministry of Internal Affairs and Communications showed that Japan jobless rate came in at a seasonally adjusted 2.8% in August.
USD/CAD
The Loonie firmed to 1.2620 per dollar as oil prices poke to a multi-month high amid concerns over the demand-supply imbalance.
AUD/USD
Aussie capped below $0.7282 amid grim concerns over the Sino-American trade relations and Evergrande during early Monday. Reserve Bank of Australia meets on Tuesday for a monetary policy decision.
USD/ZAR
South African rand jumped to 14.88 against the greenback as South African manufacturing activity improved in September but at a slower pace than August, after rioting and looting in July dealt the sector a heavy blow.
USD/MUR
The local pair spiked to 42.90(selling) in the wake of Bank of Mauritius' intervention on the domestic foreign exchange market, 5 cents higher than its previous intervention.
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.
