Do more of what works and less of what doesn’t.
USD
EUR/USD
The Shared currency is on the backfoot at $1.1822 in the wake of U.S Federal Vice Chair man Richard Clarida's hawkish comments this week that conditions for a rate hike could be met in late 2022, while U.S Non-farm payrolls loom.
GBP/USD
The cable barely dropped to $1.3922 after the Bank of England left policy settings untouched but outlined a path to tapering and tightening over years to come.
USD/JPY
The yen lost its attractiveness to 109.81 against the greenback as a record case of delta variant reported in Japan coupled with the head of the Japan Medical Association asked for a nationwide state of emergency.
AUD/USD
The Aussie dollar edged lower to $0.7387, ignoring cautious optimism cited in the Reserve Bank of Australia’s quarterly Monetary Policy Statement earlier today.
USD/CAD
The Loonie trimmed previous day losses to 1.2508 versus the U.S dollar on oil price rebound and ahead of Canadian employment data later today.
USD/ZAR
South African rand plummeted to 14.73 before retreating to 14.52 after South African President Cyril Ramaphosa on Thursday appointed the Development Bank of Southern Africa's chair, Enoch Godongwana, as finance minister in a cabinet reshuffle, replacing Tito Mboweni who had asked to be excused from his position.
USD/MUR
The dollar-rupee stayed put at 42.95(Selling).
16:30 - USD - Nonfarm Payrolls (Jul)
16:30 - USD - Unemployment Rate (Jul)
16:30 - CAD - Employment Change (Jul)
18:00 - CAD - IVEY PMI (Jul)
EURGBP appears to be riding into a corrective wave A-B-C after completing 5 waves to the downside. Yesterday, we observed an impulsive break out of wave B channel which could lead EURGBP towards final wave C as per Elliott wave analysis. we remain bullish on EURGBP with stop loss below 0.8500 targeting 0.8757 , 0.8826 and ultimately 0.8915.
After rallying towards a high of 156.07 end of May 2021, we saw a three wave corrective move to the downside in GBPJPY which possibly could be the end of a corrective wave A-B-C before a new high is formed or possibly part of a larger corrective combination wave W-X-Y as per Elliott wave perspective.
127% appears to be good level for short term rebound to the upside.
Approaching 149.00/149.10 could be an opportunity to long the market with stop below 148.30 with targets levels 150 , 150.71 and 151.70.
