Look at market fluctuations as your friend rather than your enemy.
USD
EUR/USD
The Shared currency bounced off 16-month low to $1.1318 as U.S inflation expectations weighed on the U.S Treasury yields coupled with strong Eurozone CPI for October.
GBP/USD
The Cable surged to $1.3490 after a jump in Britain's October inflation piled pressure on the Bank of England to hike rates at its meeting next month.
USD/JPY
The Japanese yen shot up to 114.21 against the U.S dollar as Japan eases coronavirus-led activity restriction.
AUD/USD
The Aussie dollar extended its downfall to $0.7276 in absence of encouraging details from a virtual meeting between US President Joe Biden and his Chinese counterpart Xi Jinping.
USD/CAD,
The commodity linked Loonie crumbled to 1.2611 against the greenback thanks to a fall oil prices that hit a six-week lows.
USD/ZAR
South Africa's rand modestly gained to 17.50 per U.S dollar as local retail sales rose and consumer inflation came in unchanged.
USD/MUR
The dollar-rupee stayed put at 43.50(selling) on the local market.
17:30 - USD - Philadelphia Fed Manufacturing Index (Nov)
17:30 - USD - Initial Jobless Claims
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.
