Dollar Index and Euro continue to trade within 105-106.50 and 1.06-1.05 while USDJPY and Aussie could attempt to rise towards the upper end of the mentioned ranges of 148-150 and 0.63-0.64 before falling from there. Pound has started to dip from 1.2220 which if holds can be bearish for the currency in the next few sessions.
EURJPY has risen well and can test resistance at 158.50 from where a decline looks possible. USDCNY is finding it difficult to sustain above 7.3150 and hence could see some near term trade within 7.28-7.3150. USDRUB may trade within 96-100. EURINR has risen above 88 and needs to sustain the rise to head towards 88.50, else can be bearish for a fall to 87.50 soon. We are cautious on USDINR to see a breakout above 83.30 soon rising towards 83.40/50. Till then it can range within 83.30-83.20.
The US Treasury yields have surged and are coming closer to their key intermediate resistances. A strong break above the upcoming resistances can trigger more rise. The German yields have also risen sharply. A strong follow-through rise from here can take them further higher. The 10Yr GoI is holding well above its support and keeps alive the chances of further rise from here. The 5Yr is also holding above its support but could remain vulnerable to fall if it fails to bounce strongly from current levels.
Dow Jones has come down whereas Nifty lacks strength to move up above 19850 but while above the support at 33800-33700 (Dow) and 19600 (Nifty), the outlook will remain bullish. DAX needs a strong rise above 15350 to clear the path for further upside. Nikkei and Shanghai are likely to be range bound for some time.
Commodities have risen amid the Israel and Gaza war conflict. Crude prices have risen back to levels above $91 (Brent) and $87 (WTI) respectively and may look to rise further from here. Gold and Silver have broken above their crucial resistance at 1950 and 23 respectively and while this break sustains, outlook is bullish to see further highs in the near term. Copper has bounced back from the support at 3.53 and looks bullish to rise towards 3.70. Natural gas has bounced back as the support at 3.0 has held well.
