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USD
EUR/USD
The Shared currency sidelined at $1.1651 after inflation figures in the Eurozone came in line with expectations.
GBP/USD
The Cable remained firm at $1.3811 on perceptions that the Bank of England will raise interest rates as soon as next month to curb inflation, despite softer-than-expected U.K. price data on Wednesday.
USD/JPY
The Japanese yen remained cautious at 114 against the U.S. dollar as traders awaiting for the U.S. Initial Jobless Claims and Fed's Offical's speeches to gauge the market sentiment.
AUD/USD
The Aussie dollar extended its winning streak to $0.7501, ignoring downbeat sentiment data from the National Australia Bank.
USD/CAD
The Loonie rose to 1.2328 versus the U.S. dollar on the back of higher-than-expected Canadian inflation data.
USD/ZAR
South African bolstered to 14.42 per U.S dollar after local data showing consumer price inflation quickened slightly to 5.0% last month.
USD/MUR
The dollar-rupee stayed put at 43.05(selling) post Bank of Mauritius intervention on the local market.
16:30 - USD - Philadelphia Fed Manufacturing Index
16:30 - USD - Initial Jobless Claim
18:00 - USD - Existing Home Sales (Sep)
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.
