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USD
EUR/USD
The Shared currency modestly gained to $1.1462 as U.S high inflation wreaked havoc on consumer sentiment and ahead of ECB president Christine Lagarde speech before the Committee on Economic and Monetary Affairs of the European Parliament later in the day.
GBP/USD
The Cable regained traction to $1.3439 as investors eyes for BOE rate hike clues during Bank of England's Jonathan Haskel's speech, which is due later today.
USD/JPY
The Japanese yen rose to 113.81 against the U.S dollar unfazed by Japan’s third-quarter GDP contracting larger than expected.
AUD/USD
The Aussie dollar shot up to $0.7347 with the Reserve Bank of Australia releasing the minutes from its November meeting on Tuesday.
USD/CAD
The Loonie meandered at 1.2529 against the greenback on increasing pressure on US President Joe Biden to release supplies from the Strategic Petroleum Reserve.
USD/ZAR
The South African rand held on previous day's gain at 15.29 per U.S dollar, S.A's business confidence data eyed.
USD/MUR
The dollar-rupee blast above the clouds by 10 cents to 43.30(selling) following intervention from the Bank of Mauritius.
14:00 - 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.
