In the currency markets, the Dollar Index is anticipated to trade within the range of 102-103, while the Euro could see an upward movement towards 1.10 as long as it remains above 1.0870-1.09. EURJPY and USDJPY have experienced significant declines and may continue bearish trends towards 157 and 143, respectively. USDCNY is expected to slowly rise towards 7.18/20 as long as it stays above 7.10/12. The Australian Dollar might trade within the range of 0.6650-0.6750 for the next few sessions, while the Pound could rise towards 1.28 or higher in the near term. USDRUB is projected to trade within the range of 90-92 for the next few sessions, and EURINR may hold within 90.50-91.50. USDINR needs to rise from 83, or it could potentially break lower to test 82.90 before an expected rise is observed.
Turning to the bond markets, US Treasury yields have slightly dipped, but there is a possibility of further upward movement to test resistances before the overall downtrend resumes. The upcoming release of US CPI data on Thursday is deemed crucial to monitor. German yields remain stable, with a near-term positive view expected to see a rise before potentially reversing lower again. The 10Yr and 5Yr Government of India (GoI) yields are decreasing as anticipated, with a negative bias to see further falls in the future.
In equity markets, Dow Jones has risen sharply but needs to surpass 37800 to negate the danger of a downturn. DAX has seen further gains and may continue to rise. Nifty has experienced a significant decline, but the levels of 21500-21400 are expected to offer support and maintain a bullish outlook. Nikkei has risen towards the upper end of the range, and it remains to be seen whether a breakout will occur on the upside. Shanghai has rebounded, and if sustained, it could rise further towards its immediate resistance.
In the commodities market, crude oil prices appear mixed and might continue to trade sideways. Gold and Silver are expected to decline as long as they remain below 2060 and 23.50, respectively. Copper has bounced back but could face rejections from the 3.85-3.88 range. Natural Gas is potentially poised to break above 3.00 and target further upside.
