The Dollar Index has held quite well above 101.40, but the overall view remains bearish to 101 in the near term. Euro has held well above 1.10 but needs to break above 1.1050 to further test 1.11 on the upside. Fall from anywhere between 1.1050-1.11 can be seen towards 1.09 or lower. While EURJPY is near the upper end of its range of 156-157.30, USDJPY has been flat for the last 2-3 sessions but is expected to fall towards 141 soon. Aussie is bullish towards 0.69. Pound continues to move slowly higher within its immediate range of 1.26-1.28. USDCNY is rising as expected but needs to break above 7.15 to be bullish. USDRUB is down as expected and could trade within the broad 94-88 range for the next few weeks. USDINR continues to trade in the 83.00-83.30 range. EURINR is coming down from 92 and could head towards 91.50-91.00 by the end of the week.
US Treasury yields are slightly lower but our bearish view remains intact. German yields are stable and could see low volatility for the rest of the week. The view is bearish and may resume the decline by the end of next week. The 10yr and 5yr GoI remain stable within their narrow range. Bias is negative to break the range on the downside and see a fresh fall going forward.
Dow Jones remains bullish to see a breakout at the upper end of its range and further rise on the upside. Nifty continues to rise and remains bullish for a rise towards its resistance. Shanghai is bearish for a break below the lower end of its range and fall towards its support. Nikkei has room to test its key resistance at 33800-34000.
Brent has broken above its key resistance while WTI is rising towards its resistance at $76. The outlook is bullish for both crude oil prices. Gold is gradually rising towards its immediate resistance as expected. Silver and copper may remain range bound for some time before a breakout to the upside is seen. Natural gas has bounced back from yesterday’s decline, but needs to overcome the upcoming resistance to break above.