The requirement to be successful is giving up the idea that your job is to be right on the first try.
USD
EUR/USD
The single currency plummeted to $1.1583 after European Central bank President Lagarde and Governing Council member, Bank of France Head, Francois Villeroy de Galhau turned down the reflation fears.
GBP/USD
British pound fizzled out from $1.3647 to $1.3603, on comments from UK Prime Minister Johnson about the litigating UK fuel crisis, casting it as "abating", as the UK hit back at France over its threat to Britain’s electricity supplies complying with its dispute over fishing rights.
USD/JPY
Yen lost ground to 111.75 per dollar on improving risk appetite as U.S. Senate will vote on Wednesday on a Democratic-backed measure to suspend the U.S. debt ceiling as partisan brinkmanship in Congress risks an economically crippling federal credit default.
USD/CAD
Loonie tumbled to 1.2607 against its U.S. counterpart amid oil paused near new multi-year highs.
AUD/USD
The Australian dollar plunged to $0.7259 on growing worries about fragile growth in China as defaults at Evergrande Group triggered a rout in its shares and bonds on Tuesday with fresh credit rating downgrades.
USD/ZAR
South Africa's rand cascaded to 15.09 per dollar despite its central bank highlighting inflation risks in a biannual review of its monetary policy stance.
USD/MUR
Dollar-rupee remained stagnant at 42.90(selling) on the local market.
12:30 - GBP - Construction PMI (Sep)
16:15 - USD - ADP Nonfarm Employment Change (Sep)
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.
