Accepting losses is the most important single investment device to ensure the safety of capital
USD
EUR/USD
The Shared currency pared previous day's gains to $ 1.1579 in spite of better than forecasted data from Germany, investors now await the latest U.S. inflation data that could provide a clue to the U.S. Federal Reserve’s timetable for interest rate hikes.
GBP/USD
The Cable slipped to $1.3552 amid a broad US dollar rebound and looming Brexit risks while Ireland readies contingency plans for the UK trade war with the EU.
USD/JPY
The Japanese yen pressured down to 112.87 versus the U.S dollar after data showed that Japan's real wages declined in September for the first time in three months as inflation picked up faster than growth in nominal pay.
AUD/USD
The Aussie dollar dived to $0.7354 unmotivated by better than forecasted Chinese CPI and PPI earlier today.
USD/CAD
The Loonie unbothered at 1.2441 against the U.S dollar although BOC’s Mecklem refrained from monetary policy clues after previously citing inflation fears.
USD/ZAR
South Africa's rand hammered to 15.08 per U.S dollar as damaging local power cuts are scheduled to continue until the weekend.
USD/MUR
The dollar-rupee trickled by 5 cents to 43.10(selling) following intervention from the central bank.
17:30 - USD - Core CPI (MoM) (Oct)
17:30 - USD - Initial Jobless Claim
19:30 - 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.
