Dollar Index continues to remain bullish towards 107-108. Euro, Pound and EURJPY look bearish for a fall towards 1.0450-1.04, 1.21/20 and 156 respectively. USDJPY can move up towards 150-152 before pausing the rally. Aussie can fall to 0.63 while below 0.6450. USDCNY can rise slowly towards 7.35 while USDRUB can move up within 94-98 range. EURINR may test 87-86 if it continues trade below 88 in the near term. USDINR could continue moving higher towards resistance at 83.30; if breaks can bring in 83.50 into the picture.
The US Treasury yields have risen sharply and have room to rise further. The US PCE data release tomorrow will be important to watch and that can impact the yield movement. The German yields continue to move up in line with our expectation and can rise further. The 10Yr and 5Yr GoI continue to remain stuck inside their range. Immediate outlook is mixed, and the range can remain intact for some more time.
Dow Jones tested 33300 as expected and has bounced back from there. Nifty needs a strong break above 19800 to bring back the bullishness. DAX is coming closer to a key support level of 15150. Nikkei to remain bearish for the nerm term. Shanghai is to be range bound within 3075-3150.
Brent and WTI have risen sharply above $95 and $94 respectively after the EIA report that US crude stocks fell by 2.2 million barrels last week to 416.3 million barrels thereby adding woes to tight global supply.
Gold has declined sharply breaking below the support at 1900 and looks vulnerable to fall further from here. Silver is near its key support at 22.50/40. Need to see if that holds or not. Copper remains bearish for the near term. Natural gas lacks momentum to rise above 2.95 and is likely to trade within 2.95-2.80 for a while.
