FED suggested an extended pause in the interest rates. The Dollar Index trades above 106 can rise towards 107 or higher while Euro is headed towards resistance at 1.06 and could face a decline soon.
EURJPY continues to trade within 157-159 region. USDJPY needs to break above 150 to rise towards 150.50-151. USDCNY has sustained above 7.30 and can continue to rise towards 7.32 +. Pound can rise towards 1.22 while Aussie can test 0.6280 on the downside.
USDRUB can rise towards 99-100 while above 96 else can show signs of decline in case of a fall below 96 if seen in the near term. USDINR has shown a dip to 83.08 on the NDF markets overnight. Could that indicate a possible decline from resistance at 83.30 towards support at 83.00? Could possibly be so in today’s session. In that case the expected break on the upside may not happen just now.
The US Treasury and the German yields remain bullish and are continuing to move up in line with our expectation. There is room for them to rise more. Jerome Powell in a speech yesterday reiterated to maintain tight policy until the central bank reaches its inflation target. The 10Yr and 5Yr GoI are moving up within their respective range. They are likely to remain in the range for some time.
Dow Jones, DAX and Nikkei continues to fall and remain bearish to fall further. Nifty can test 19450-19400 following the weakness in the global markets. Shanghai came down towards 2985 as expected and is bouncing back from there.
Brent and WTI have risen well as expected but needs to rise past $94-95 and $90 respectively to clear path for further upside. Gold and Silver continues to rise and remain bullish for the near term. Copper looks mixed and may remain range bound for some time. Natural gas has broken below the crucial support at 3.00 and looks vulnerable to fall more from here.
