The Dollar Index is holding above 102, but may have some room to fall to 101.50 before finally moving higher. The Euro has risen sharply towards 1.10 after the release of the weaker EU CPI. EURJPY could not sustain its rise above 158 and is back in its range of 158-154, USDJPY tested 145 as expected before moving lower. Aussie may rise towards 0.68 before being rejected, while Pound continues to trade within the 1.2550-1.28 range. USDCNY is trading in the 7.15-7.10 range for now. USDRUB may test 91 soon. USDINR seems to be holding below our mentioned resistance of 83.20 and could test 83.10/83.00 again if the slide continues. EURINR has risen above 91 against our expectation of a decline and is now heading towards 91.50.
US Treasury yields have fallen again. The bearish view is intact. Further declines are on the cards. The US GDP data today and the PCE tomorrow are important to watch. German yields have dropped again and are at their key supports. A further decline from here may trigger a deeper decline in the future. It is now a wait and see situation. The 10Yr and 5Yr GoI are in a corrective bounce. The upside is capped and the bearish view remains intact.
Dow Jones has rallied sharply above 37500 and looks bullish for new highs. DAX is bouncing back as support at 16600 is holding well. Nifty has been stuck in a tight range for the last couple of days but the broader outlook remains bullish to see a rise towards its resistance. Shanghai is threatening to break below the support at 2925. Nikkei rallied sharply and broke above resistance at 33000-33500 but needs to break above 34000 to further strengthen bullish momentum.
Crude oil prices have risen towards their main resistance. Need to see if this holds and leads to a pullback or not. Gold and silver appear to be range bound. Copper has room to break above its immediate resistance and go higher. Natural gas has rebounded sharply and can rally further on a break above resistance at 2.60.
