Morning Briefing


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Dollar Index needs to break above 103.70 to continue moving up which if seen can take Euro further down. Inverse correlation of Euro with USDCNY and rising USDCNY above 7 could be bearish for the Euro in the coming sessions. Pound and Aussie can trade within 1.24-1.26 and 0.6680-0.6580 region while EURJPY could pause below 150 and see a short corrective dip before eventually moving up towards 152. Dollar Yen is ranged within 139-137.25. USDRUB is also ranged within 78.95-81. USDINR has crucial resistance near 82.85 and 83 which if holds in the near term can push the pair lower. EURINR can be ranged within 89-90 region for sometime.

The US Treasury yields sustain higher. Near-term outlook is bullish. The yields can rise more. The German yields continue to move up. Outlook is bullish to see further rise from here. The 10Yr and 5Yr GoI have bounced sharply. But resistances ahead can cap the upside and keep the broader down trend intact.

Dow Jones fell further and is likely to come down more from here. DAX is on a corrective fall. Nikkei has come down failing to sustain the break above 31000. Shanghai has broken below the support at 3225 and can now test next support at 3200. Nifty has come-off from its intraday high but the near term supports can limit the downside and keep the broader uptrend intact.

Brent and WTI have risen towards the upper end of the sideways range and look likely to break on the upside and move up further. Gold may remain in range for a while. Silver and copper have declined and look vulnerable to fall further from here.

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