Courage is not the absence of fear, but the capacity to act despite our fears.
USD
EUR/USD
The common currency poked above $1.13 this morning on dovish prepared remarks from Fed chair Jerome Powell who kept his reflation view intact despite citing virus woes to weigh price pressure and employment.
GBP/USD
The pound loitered around $1.3315, waiting for directional clues as Britain called an urgent meeting of G7 health ministers on Monday to discuss the severity of the virus.
USD/JPY
The safe-haven yen soared to 113.20 per dollar on Moderna’s Chief Executive Bancel, suggesting further hardships to the South African variant of the coronavirus.
USD/CAD
The Canadian dollar edged lower against the greenback to 1.2765 on Monday as a rebound in oil prices lost some momentum.
AUD/USD
The Australian dollar tumbled to $0.7108 over mixed upbeat China’s headline NBS Manufacturing PMI and downbeat Non-Manufacturing PMI.
USD/ZAR
The South African rand seesawed around 16.13 per dollar as fears eased that the new Omicron coronavirus variant would derail the U.S. recovery and delay Federal Reserve interest rate hikes.
USD/MUR
The dollar-rupee stayed unchanged at 43.42(selling) on the Mauritian market.
12:55 - EUR - German Unemployment Change (Nov)
14:00 - EUR - CPI (YoY)(Nov)
17:30 - CAD - GDP (MoM)(Sep)
19:00 - USD - CB Consumer confidence (Nov)
19:00 - USD - Fed Chair Powell testifies
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.
