Dollar Index can rise towards 107 while Euro has scope to fall to 1.05 or lower. EURJPY has declined from resistance at 158.50 and looks bearish for a fall to 157 while USDJPY needs to break above 150 to move higher else can decline to 148 again. Aussie and Pound look bearish towards 0.62 and 1.21 respectively. USDCNY can see a slow rise towards 7.35. USDRUB may trade within 96-100. EURINR has fallen below 88 and head towards 87.50-87.00. We remain cautious on USDINR to see a breakout above 83.30 soon rising towards 83.40/50. Till then it can range between 83.30-83.20.
The US Treasury and the German yields continue to move up sharply. The outlook is bullish, and both the yields can rise further in the coming days. The 10Yr and 5Yr GoI can oscillate in a sideways range for some time. A breakout of the range will determine the next move.
Major equities have fallen. Dow Jones and Nifty have declined below 33700 and 19700 but have supports at 33400 and 19600. Need to see if the support holds or not. DAX, Nikkei and Shanghai have fallen breaking below their support levels and look vulnerable to come down further in the near term.
Brent have come down after testing a high of $93 but downside seems limited to $90-89 which will keep our bullish view intact for a further rise on the upside. WTI lacks strength to rise above $88 but outlook remain bullish to see an eventual break above $88 and rise towards $90 or higher. Gold and Silver outlook remains bullish for the near term. Copper and Natural gas is to be range bound for a while.
