Most currencies appear to be trading within a range, and the Dollar Index is stable, needing a further break past 102.5 to rise higher. The Euro is also stable within 1.09-1.10 and could fall while below resistance at 1.10. AUD may rise towards 0.68 before facing rejection, while GBP may head towards 1.2550 before bouncing back. USDCNY is moving up within the 7.15-7.10 region, needing to break past 7.15 to move higher. USDRUB has risen past 91 and could test 92-92.50. USDINR may head towards 83.25/30, and EURINR could test 90.50 soon.
US Treasury yields continue to fall, maintaining a bearish view with more fall expected. US GDP today and PCE tomorrow are crucial data releases to watch. German yields have declined below key supports, accelerating the fall, and the broader outlook is bearish. The 10Yr and 5Yr GoI struggle to see a strong corrective rise, with the broader picture remaining bearish.
Most equities experienced a significant sell-off. Dow Jones declined sharply after failing to sustain the break above 37500. DAX needs to sustain above 16500 to keep the bullish view intact. Nifty came down sharply, contrary to expectations, with a further dip possible. Shanghai broke sharply below support at 2925, indicating a possible further dip. Nikkei fell back, failing to break above the resistance at 33800-34000.
Crude prices need a decisive break above key immediate resistances for momentum, with a possible fall back. Gold remains range-bound. Silver and copper look bullish for the near term. Natural gas holds well below the resistance at 2.60, indicating a bearish view for a further dip in the near term.
