The four most dangerous words in investing are: This time it's different.
USD
EUR/USD
The Shared currency slumped to $1.1290 amid disappointing performance of the euro zone economy and a fresh wave of COVID-19 in Europe causing some countries to contemplate lockdowns again, ECB's Christine Lagarde speech eyed.
GBP/USD
The Cable hovered at $1.3420 after the release of stronger than expected U.K. employment data, lifting the chance of the Bank of England hiking interest rates in December.
USD/JPY
The Japanese yen hit fresh low of 114.90 since March 2017 against the U.S dollar after data showed U.S. consumers looked past rising prices and drove retail sales higher than expected last month.
AUD/USD
The Aussie sank to $0.7280 after wage growth data came in as economists expected earlier today, doing nothing to sway a dovish Reserve Bank of Australia.
USD/CAD
The Loonie slipped to 1.2574 against the greenback as domestic data showed a slowdown in housing starts and ahead of Canadian CPI due later today.
USD/ZAR
South African rand hammered to 15.52 per U.S dollar as investors are awaiting domestic inflation data, due alongside retail sales data later in the day.
USD/MUR
The dollar-rupee surged by 10 cents to 43.50(selling) on the local market tracking the U.S dollar strength.
14:00 - EUR - GDP (YoY)(Q3)
17:30 - USD - Core Retail Sales (MoM)(Oct)
17:30 - USD - Retail Sales (MoM) (Oct)
20:10 - 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.
