Currency Markets:
On Friday, currency pairs experienced fluctuations in response to the US data releases on hourly wage earnings and Non-Farm Payrolls (NFP). The Dollar Index is anticipated to trade within the range of 102-103, while the Euro may move towards 1.10, remaining above 1.0870. EURJPY encountered resistance at 159 and is poised to dip back towards 157, while USDJPY could retrace towards 144, remaining below 146. For USDCNY to ascend towards 7.20/22, it needs to sustain a rise past 7.16. The Australian Dollar could trade above 0.66-0.6650, and the Pound is expected to continue trading within the range of 1.26-1.28. USDINR and EURINR appear bearish, with USDINR potentially falling towards 83.00 before a rebound.
Bond Markets:
US Treasury and German yields are on an upward trajectory, with the likelihood of an extended corrective rise before resuming their broader downtrend. The 10-year Government of India (GoI) yield approaches resistance, signaling a potential resumption of the downtrend. The 5-year GoI yield moves within its range, exhibiting a negative bias for a downside break eventually.
Equity Markets:
The Dow Jones index is vulnerable, with a potential downside target of 37000. DAX faces the risk of breaking below 16500 and falling to 16000. Nifty has room to rise towards its resistance while remaining above 21500. Shanghai’s market may decline towards its support level, followed by a possible bounce back.
Commodity Markets:
Crude oil prices are anticipated to rise towards the upper end of the range. Gold and Silver exhibited volatility following the release of stronger US NFP data and are likely to remain range-bound for a period. Copper has the potential to fall towards its key immediate support before a rebound. Natural Gas is expected to decline while below the resistance at 3.00.
