In the current financial landscape, the Dollar Index is demonstrating stability below the 102.72 mark, with potential for a dip to 102 or slightly lower before a subsequent ascent towards 103. Simultaneously, the Euro has rebounded impressively from 1.09, signaling a potential rise towards 1.10 before a brief pause. Bullish sentiments prevail for EURJPY and USDJPY, projecting targets of 160 and 146, respectively.
USDCNY experienced a rise above 7.17 but retraced from this level. A sustained rise past 7.17 is essential for a bullish outlook; otherwise, a fall back to 7.14/12 is anticipated. The Australian Dollar hovers near its support at 0.67, with an expected bounce towards 0.675-0.68.
The British Pound maintains its trading range within 1.26-1.28, while USDRUB retreats from resistance at 92.60, potentially falling back towards 90-89. In the USDINR pair, the range of 83.35-83.20/15 holds for now, and EURINR, having rebounded from 90.80 support, could see further gains towards 91.5 before a potential pause.
The market is keenly focused on the release of US Non-Farm Payroll (NFP) data and Average Hourly Earnings. The resurgence in US Treasury yields demands attention, and a breach of immediate resistances could pave the way for an extended corrective rise. German yields align with expectations, likely to resume a downtrend after testing resistances. The 10-year Government of India (GoI) yield approaches a critical resistance point, poised for a fresh decline, while the 5-year GoI remains stable within a narrow range.
Equity markets are characterized by nuanced trends. Dow Jones hints at a potential downside before a renewed rally. DAX adopts a cautious stance, and Nifty, having rebounded, requires a robust surge above 21700 to mitigate the risk of falling below 21500 and to clear the path towards resistance. Nikkei foresees sideways trading within 32500-34000, maintaining a bullish perspective. Shanghai remains range-bound.
In the commodities arena, crude oil prices exhibit mixed signals, anticipated to trade within a range for the time being. Gold sustains its position above a key support level, projecting further gains in the near term. Silver rebounds but faces resistance-turned-support, potentially limiting upside movements. Copper remains subdued below the 3.88-3.90 resistance. Natural Gas experiences a slight dip but maintains a bullish outlook for the near term. The US NFP data holds significance today, potentially introducing volatility to the commodity market.