Change usually starts with a spark of bravery, an act by a few, or sometimes many, to challenge the status quo.
USD
EUR/USD
The single currency crunched lower from $1.1640 to $1.1595, soured by Sentix's index for the eurozone, which tumbled to 16.9 from 19.6 in September, dimming economic expectations.
GBP/USD
The pound bogged down from $1.3640 to $1.3590 after renewed tensions between Britain and France emerged over post-Brexit fishing rights.
USD/JPY
Yen gravitated back from a one-week high at 110.81 to 111.18 per dollar, as U.S. Treasury yields rose on investor caution amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff in two weeks.
USD/CAD
Loonie slammed from an almost one-month high of 1.2558 to 1.2620 per greenback, despite oil prices surged to multi-year highs on reports that the Organization of Petroleum Exporting Countries and allies would stick to their current output policy instead of boosting supply more.
AUD/USD
Aussie lost ground to $0.726 after the Reserve Bank of Australia (RBA) kept the benchmark interest rate unchanged at 0.10%, together with the weekly bond purchase at $4.00 billion.
USD/ZAR
The rand hammered to 15.05 a dollar as heavily indebted property developer China Evergrande requested a halt in trading its shares in Hong Kong pending an announcement about a major transaction. South African Reserve Bank (SARB) monetary policy review eyed.
USD/MUR
The dollar-rupee tiptoed at 42.90(selling) on the domestic market.
12:30 - GBP - Composite PMI (Sep)
12:30 - GBP - Services PMI (Sep)
18:00 - USD - ISM Non-Manufacturing PMI (Sep)
19:00 - EUR - ECB President Lagarde Speaks
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.
