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USD
EUR/USD
The common currency plummeted to a fresh low of $1.1224, hurt by a resurgence in COVID-19 cases in Europe, dousing investor hopes of a quicker recovery in consumption and growth worldwide.
GBP/USD
The cable plunged to $1.3393 on news citing France's warning to the U.K. as the post-Brexit fishing dispute escalated among them.
USD/JPY
The Japanese Yen lost altitude to 115.08 per dollar after Federal Reserve Chair Jerome Powell was reappointed for a second term, emboldening bets on higher U.S. interest rates.
USD/CAD
The Loonie tumbled to 1.27 against the strong greenback as Fed Chair Powell's nomination drove expectations that the central bank will stay the course on tapering economic support.
AUD/USD
The Australian dollar dragged down to $0.7220 over fears of fresh US-China tussles as the U.S. warships again sail on the sensitive Taiwan Strait on Tuesday.
USD/ZAR
Rand fell to 14.85 per dollar, taking its cue from global factors, with the outlook for U.S. monetary policy a major theme.
USD/MUR
The local pair ticked up by 3 cents to 43.45(selling) on the domestic market.
13:30 - GBP - Composite PMI
13:30 - GBP - Manufacturing PMI
13:30 - GBP - Services PMI
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.
