The Dollar Index is trading within the 103-104.50 region while the Euro is bearish towards 1.07 and below 1.0850. US FOMC meeting tonight would be crucial to watch. Upside could be limited for EURJPY and USDJPY as they have immediate resistances at 158 and 147, below which view is bearish. Aussie and Pound are in a sideways consolidation within 0.65-0.6650 and 1.25-1.27 respectively. USDRUB is bearish at 90-89.50. USDCNY may test 7.20/22 before facing a rejection. USDINR is likely to be range bound at 83.25-83.40 with some possibility of a spike towards 83.50 soon. EURINR could fall to 89.
US Treasury yields are slightly lower. The outcome of the US Fed meeting tonight could be a trigger for yields to move either way from here and set the trend going forward. German yields are falling as expected. They remain vulnerable to an extended decline from here if they break below their upcoming supports. The 10yr and 5yr GOI remain stable within their sideways range. The immediate outlook is unclear and we will have to wait for the range breakout.
Dow Jones is moving up towards its resistance. DAX has dipped slightly but the broader trend remains bullish. Nifty is struggling to make a sustained move above 21000. Shanghai has pulled back but view remains bullish to see a rise above 3000 while above support at 2930-2925. Nikkei is holding well below resistance at 33200-33500.
Crude oil prices have fallen sharply after facing rejections from intermediate resistance, contrary to our view to see a break above the resistances. Gold and copper remain vulnerable to a drop towards support. Silver remains subdued. We will have to see if it manages to hold above 22.80 or not. Gold and silver remain lower despite the release of weaker than expected US CPI data. The next key focus is the FOMC meeting tonight. Natural gas has room to test key support before a bounce can happen.
