Accepting losses is the most important single investment device to ensure the safety of capital
USD
EUR/USD
The Shared currency extended losses to $1.1287 after German manufacturing orders fell much more than expected in October, further clouding manufacturers' growth outlook in Europe's largest economy.
GBP/USD
The Cable soared to $1.3281 after Bank of England Deputy Governor Ben Broadbent warned Britain's tight labour market would add pressure on inflation, reigniting some hopes for an interest rate hike.
USD/JPY
The Japanese yen slipped to 113.64 versus the greenback as market sentiment improved in hopes of finding a cure for Omicron escalation.
AUD/USD
The Aussie dollar trimmed previous day's losses to $0.7070 after the Reserve Bank of Australia kept the benchmark rate unchanged at 0.1% and the weekly bond purchases of $4.0 billion intact until at least mid-February 2022 earlier today.
USD/CAD
The Commodity linked Loonie climbed to 1.2740 against the U.S dollar amid a pickup in crude oil prices.
USD/ZAR
The South African rand firmed at 15.87 per U.S dollar on signs that Omicron coronavirus variant driving a fourth wave of COVID-19 infections in the country may be causing mainly mild infections.
USD/MUR
The greenback tripped by 8 cents to 43.42(selling) following intervention from the Bank of Mauritius on the domestic market.
14:00 - EUR - German ZEW Economic Sentiment
19:00 - CAD - Ivey PMI (Nov)
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.
