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USD
EUR/USD
The shared currency extended losses to $1.1555 after German Factory Orders revealed below expectations, U.S NFP eyed.
GBP/USD
The Cable hammered to $1.3595 after the Bank of England left its main interest rate unchanged having previously signaled it could raise it, casting doubts over the bank's communication.
USD/JPY
The Japanese yen darted higher to 113.67 although Federal Reserve said it was in no rush to raise interest rates after it began tapering its bond-buying program.
AUD/USD
The Aussie dollar pressured down to $0.7395 on broad US dollar strength.
USD/CAD
The Loonie slipped to 1.2457 on oil price fluctuations and ahead of Canadian Employment change later today.
USD/ZAR
The South African rand gained to 15.24 against U.S dollar despite the municipal elections showing the outcome showing the country's ruling party recording its poorest ever electoral showing.
USD/MUR
The dollar-rupee climbed by 5 cents to 43.15(selling) tracking U.S dollar strength.
16:30 - USD - Nonfarm Payroll (Oct)
16:30 - CAD - Unemployment Change Change (Oct)
16:30 - USD Unemployment Rate (Oct)
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.
