Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.
USD
EUR/USD
The Shared currency pressured down to $1.1685 on higher U.S. yields and benefiting from investor nervousness about the Federal Reserve starting to withdraw policy support just as global growth headwinds gather.
GBP/USD
The Cable cascaded to $1.3548 on sharp rise in gas and fuel prices heightened inflationary concerns and economic slowdown fears, Bailey speech eyed.
USD/JPY
The yen touched an 18-month low of 111.685 versus the greenback as US T-bond yields soar.
AUD/USD
The Aussie dollar slipped to $0.7250 as Australia is up for ending emergency support payments amid upbeat covid vaccine jabbing.
USD/CAD
The Loonie lost ground to 1.2682 against the U.S dollar as Canada’s biggest export item WTI crude oil eased from three-year high.
USD/ZAR
The South African rand hammered to 15.10 per U.S dollar as more evidence of slowing growth in China amid a power shortage dented risk appetite, while poor domestic non-farm jobs data also weighed on sentiment.
USD/MUR
The dollar-rupee idled at 42.90(selling) on the local market.
18:00 - USD - Pending Home Sales (MoM) (Aug)
19:45 - GBP - BoE Gov Bailey Speaks
19:45 - USD - Fed Chair Powell Speaks
19:45 - EUR - ECB President Lagarde Speaks
19:45 - JPY - BoJ Governor Kuroda Speaks
The pound sterling is hovering near its one-month low around 1.3620 ahead of FOMC and BOE monetary policy meetings. The pound met with some fresh supply in the zone 1.3670-80 which could be a key resistance in the near term followed by 1.3800.
On the technical side, GBPUSD appears to be moving in a consolidation zone. As per Elliott wave principle, it appears that GBPUSD is currently riding a wave B ( triangle) of a corrective move A-B-C which could put more pressure to the downside in the near term.
A break and close of 1.3600 opens the door towards 1.3100 in the medium term. A breach of wave A of triangle (1.3980) invalidates the move and can be bullish in the medium term.
