The Dollar Index is rising as expected and could test 102.50 while the Euro could fall to 1.0950-1.09. EURJPY looks bearish towards 155/154 while USDJPY has rebounded and could now test 143 against our expectations of a decline towards 140-138. USDCNY is rising towards our mentioned targets of 7.15/16. Aussie is heading towards 0.6750/0.67 while Pound is near its immediate support at 1.26 which needs to produce a bounce otherwise could be vulnerable to fall towards 1.24. USDRUB rallied sharply yesterday but now seems to be falling from 91. USDINR rallied slightly above our expected resistance of 83.30 but later came down. The 83.35-83.20 range may hold for the day. EURINR has risen above 91 and could soon test 91.50 before pausing.
US Treasury and German yields are experiencing a corrective rally in line with our expectations. Both yields can rise further from here in the coming days. The 10Yr GoI may move higher to test its resistance before turning lower to resume the downtrend. The 5Yr GoI on the other hand is stuck in a tight range within its broader downtrend.
Dow Jones has room to test its immediate resistance before a corrective decline can take place. DAX was volatile yesterday but as long as it holds above 16500, our bullish view remains intact. Nifty needs to hold above 21500 to move up towards its resistance. Shanghai has declined and failed to rise above 2975 but 2925 could provide some support and keep our view intact for a rise towards its resistance.
Crude oil prices have fallen sharply after the disappointing US S&P manufacturing PMI for Dec-23. Gold and silver have room to test their key immediate support before a rebound can take place. Copper is approaching 3.85. Failure to hold above 3.85 may drag copper lower. Natural gas has pulled back but the downside may be limited to 2.50-2.45.
