Lower US CPI release yesterday aided a rise in the US Dollar. Dollar Index and Euro may now trade within 105.50-107 and 1.0650-1.05 in the near term. Aussie and Pound have fallen sharply from respective resistances and could remain raged within 0.6450-0.63 and 1.2350-1.21 respectively in the coming week where the mentioned upper and lower levels are decent resistances and supports. EURJPY trades around 158, unable to sustain the rise seen yesterday. USDJPY has support at 148 above which view is bullish to 150. USDRUB may trade within 95-101/102.50. EURINR could trade within 87.50-88.50 while USDINR may continue trade within 83.00-83.30 for a few more sessions.
The US Treasury yields have risen back sharply as the inflation data came in better than the market expectation. However, the inflation numbers were lower than the previous reading. The US Headline CPI rose 3.69% (YoY) and the Core CPI (4.13%) in September. Both were down from their previous month reading of 3.71%, 4.39% respectively. The Treasury will have to sustain this bounce in order to rise further and negate a fall back. The German yields have also risen but need to get a follow-through rise from here to move higher and avoid falling further. The 10Yr and 5Yr GoI have dipped further and have room to fall further.
Dow Jones and DAX have to rise past 33900 and 15650-15700 to avoid a fall back. Nifty has dipped slightly but bias will remain bullish while above the support at 19600. Nikkei has scope to target its resistance before a corrective dip can be seen. Shanghai continue to look mixed.
Brent has bounced back a bit but while below the resistance at $88 bias will remain bearish for the near term. WTI remains subdued and has scope to fall further from here. Gold and Silver have come down from their resistance levels after the release of higher than expected US CPI data for Sep-23. Copper and Natural gas have too declined within their 3.70-3.55 and 3.2-3.5 range.
