The hard part is discipline, patience and judgement.
USD
EUR/USD
The Shared currency sailed higher to $1.1605 ahead of ZEW sentiment numbers for Eurozone and Germany and speeches from the Chiefs of the European Central Bank and the US Federal Reserve.
GBP/USD
The Cable shot up to $1.3577 shrugging off fears concerning Brexit and the UK’s coronavirus conditions, BOE’s Bailey speech eyed.
USD/JPY
The Japanese yen extended gains to 112.76 against the U.S dollar following Japan’s Prime Minister Fumio Kishida commented earlier today that he wants to compile an economic stimulus package on November 19 and an extra budget to fund the spending by the end of this month.
AUD/USD
The Aussie dollar modestly gained to $0.7420 on upbeat trade numbers from China earlier today.
USD/CAD
The Loonie meandered at 1.2440 against the U.S dollar uninspired by higher crude oil prices.
USD/ZAR
South African rand rose to 14.91 per U.S dollar as investors' risk appetite improved ahead of Finance Minister Enoch Godongwana's maiden medium-term budget speech this week.
USD/MUR
The dollar-rupee idled at 43.15(selling) on the domestic market.
14:00 - EUR - German ZEW Economic Sentiment (Nov)
17:00 - EUR - ECB President Lagarde Sepaks
17:30 - USD - PPI (MoM) (Oct)
18:00 - USD - Fed Chair Powell Speaks
20:00 - GBP- BoE Gov Bailey Speaks
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.
