News stated that Neel Kashkari, a Federal Reserve policymaker, opined that the robust U.S. economy warranted another interest rate hike, holding it “higher for longer” to bring inflation back to the 2% mark. This aided the rise in the Dollar Index which can continue to rise towards 107-108. Euro, Pound, Aussie, EURJPY all look bearish for a fall towards 1.05, 1.21/22, 0.63 and 156 respectively. USDJPY can move up towards 149-150. USDCNY can rise slowly towards 7.35 while USDRUB can remain ranged within 94-98. EURINR may test 87.50-87 if it trades below 88 in the near term. USDINR could continue moving higher towards resistance at 83.30. But whether it will break higher or not is to be seen. Chances of a break higher looks high.
The US Treasury yields have dipped slightly. The chance of seeing an extended rise is still a possibility before a corrective fall happens. The German yields sustain higher and have room to rise further before reversing lower. The 10Yr and 5Yr can dip within their sideways range.
Dow Jones has fallen sharply failing to sustain the rise and may come down further to test 33300. Nifty continues to remain stable above 19600 and looks mixed. DAX can see a corrective bounce from around 15150. Nikkei has broken below the support at 32200 and looks vulnerable to fall further from here. Shanghai is likely to be ranged within 3075-3150.
Brent and WTI have bounced back sharply as the support at $90 and $88 have held well. Gold, Silver and Copper continues to dip and look bearish for a test of their immediate support. Natural gas outlook is mixed.
