Dollar Index Dips Below 102: Weakening US GDP results have pushed the Dollar Index below 102, threatening to test support near 101.50. A bounce is crucial at this level to prevent further vulnerability.
Euro Strength at 1.10: The Euro has advanced to 1.10 against the dollar, and the sustainability of this level needs close observation for potential near-term developments.
Bearish Trends in JPY Pairs: Both EURJPY and USDJPY are maintaining bearish trends.
Aussie Faces Rejection: The Australian Dollar has faced rejection near the 0.68 resistance level and could retreat towards 0.6750-0.67.
Pound Resilience Above 1.26: The British Pound has held above the support at 1.26 and may trade within the range of 1.26-1.27 for a while.
USDCNY Slow Rise: USDCNY is gradually rising, with a breakthrough past 7.15 required for further bullish momentum.
USDRUB Exceeds Expectations: USDRUB has risen beyond expectations, aiming for further ascent towards 94.
Mixed Movement in USDINR and EURINR: USDINR briefly touched 83.28 before retracting, and EURINR has defied expectations, rising sharply toward resistance at 91.50.
Christmas Holiday Impact: Markets may experience low volatility during the Christmas holiday.
Treasury Yields:
US Treasury Yields Bounce Back: Despite a rebound, resistances ahead could limit upside potential, maintaining a bearish outlook.
German Yields Stable and Lower: German yields remain stable and lower, signaling a bearish outlook as key supports are breached.
Indian Government Bonds (GoI): Both 10Yr and 5Yr GoI may consolidate in a narrow range before potential further decline.
Equity Markets:
Dow Jones Holds Support at 37,000: Dow Jones has rallied back, finding support at 37,000, likely to remain range-bound until a potential upside breakout.
DAX Bullish Above 16,500: DAX maintains a bullish stance as long as it holds above 16,500.
Nifty Bounces Back: Nifty’s sharp rebound keeps the possibility of a rise intact, targeting the previously mentioned level.
Shanghai Limited Upside: Shanghai has rebounded, but upside potential appears capped around 2950-2960.
Nikkei Faces Downside Pressure: Nikkei could experience downside pressure as long as it remains below the resistance at 33,800-34,000.
Commodity Markets:
Crude Prices Below Key Resistances: Crude prices hover below crucial resistances, requiring a decisive breakout for a sustained rally.
Gold Surpasses Range: Gold has surpassed its upper range and has room for further upside.
Silver and Copper Bullish: Both Silver and Copper maintain a bullish outlook for the near term.
Natural Gas Range-Bound: Natural Gas is stuck in a narrow trading range.
Note: The US PCE data release is deemed significant, and the markets are anticipated to experience low volatility during the Christmas holiday.
