Dollar Index and Euro may test 105.50 and 1.0650 from where a possible near term reversal could be seen. Aussie and Pound may hold and reverse from resistances near 0.6450 and 1.2350 respectively.
EURJPY has broken above 158 and could rise towards 159-160 if it manages to sustain above 158.70. USDJPY has support at 148 which if holds can take it towards 150. USDRUB may trade within 95-102.50. EURINR could dip towards 88 or lower while below immediate resistance at 88.50. USDINR needs to break on either side of the 83.30-83.00 zone to give clarity on further direction. On the data releases, US CPI will be important to watch tonight.
The US Treasury yields have declined further and are on a corrective fall. There is room for the yields to come down further from here. The US CPI data release today will be very important to watch. A weak inflation number can drag the yields further lower. The German yields are also coming down in line with our expectation and can fall more. The 10Yr and 5Yr GoI can extend their corrective fall in the coming sessions.
Dow Jones is stuck between 33600 and 33900 over the last couple of days. DAX continues to rise and has scope to test 15650-15700 in the near term. Nifty and Nikkei remain bullish for the near term. Shanghai continue to look mixed.
Crude prices have declined sharply and look bearish to fall further from here. Gold and Silver are on their way to test key resistance as expected. The outcome of US CPI data today will decide if Gold and Silver will break above their resistance or not. Copper and Natural gas may trade sideways within 3.70-3.55 and 3.2-3.5 range respectively for some time.
