US GDP came in slightly lower at 2.1% compared to the earlier 2.4% estimate for Q2. Dollar Index fell to 102.936 but has risen from there. View is bearish while below 103.50. That said, Euro, Aussie, Pound have risen slightly and could head towards 1.0950, 0.65-0.6550 and 1.28 respectively. USDJPY has fallen sharply along with the Dollar and could test 145 before a reversal is seen. EURJPY may face rejection from resistance at 160-161. USDCNY is ranged within 7.28-7.32. USDRUB has risen above 96 and may head towards 98 soon. EURINR may face rejection from 90.50 towards 89.50/30 in the near term. USDINR can face rejection from 82.80 to fall towards 82.60/50

Dollar Index (103.12) fell sharply to test 102.936 yesterday before bouncing slightly from there. While below 103.50, view looks bearish for a fall towards 102.50.

EURUSD (1.0922) has risen well and needs to sustain above 1.0950 to head higher towards 1.10 else a fall back from current levels could pull it back towards 1.09.

EURJPY (159.33) is rising as expected and could soon test 160 or even 161 on the upside before reversing from there. Note that 160-161 is an immediate resistance zone.

Dollar-Yen (145.80) has fallen along with the Dollar and can target 145 on the downside. A further break below 145 if seen can take it lower to 144.

USDCNY (7.2834) seems to be stuck in a range of 7.32/30-7.28 and may hold so unless a sharp movement is seen soon.

Pound (1.2724) has moved up within the broad 1.26-1.28 range and can test the upper level in the next couple of sessions. Thereafter it has to be seen if it can sustain a break above 1.28 or fall within the mentioned range.

Aussie (0.6493) has risen as expected and needs to break above 0.65 to head towards 0.6550-0.66 else a fall back to 0.64 or lower can be seen.

USDRUB (96.1223) has moved above 96 and if the rise sustains, the pair can rise towards 98 soon.

USDINR (82.7375) could face rejection from 82.80 and fall towards 82.60/50 in the near term before again attempting to rise higher eventually.

EURINR (90.2748) has immediate resistance at 90.50 which if holds can produce a short decline towards 89.50-89.30 again in the near term.

The US Treasury yields have come closer to their support zone. We expect this support to hold and the yields to rise back in the coming days. The German yields have bounced back again and are keeping intact the broader bullish view. The 10Yr and 5Yr GoI are attempting to bounce. But they still look vulnerable to test their supports first before resuming their overall uptrend.

The US 10Yr (4.11%) and the 30Yr (4.22%) yields are just above their 4.1%-4% and 4.2%-4.1% support zone respectively. We expect this to hold and produce a fresh rise targeting 4.5%-4.6% (10Yr) and 4.6%-4.7% (30Yr) on the upside eventually.

The German 10Yr (2.54%) and the 30Yr (2.64%) yields have bounced back again. Bullish view is intact to see 3%-3.1%. Intermediate dips will be short-lived.

The 10Yr GoI (7.1850%) and 5Yr GOI (7.1915%) are falling initially and then recovering later in the day. A test of 7.15%-7.13% (10Yr) and 7.13%-7.1% (5Yr) is still a possibility before getting a rise to 7.35% (10Yr) and 7.45% (5Yr).

Dow Jones can see a short term corrective dip while it remains below 35000. DAX has to rise past 16000 to negate the chances of falling towards 15400-15200. Nifty remains vulnerable to a fall towards 19100-19000. Nikkei lacks strength to move up above 32500. Shanghai has declined and may come down towards 3100-3075 from here.

Dow (34890.24, +0.11%) tested 35000 and has come-off. A near-term corrective dip to 34700-34650 is possible before a rise to 35500 happens.

DAX (15891.93, -0.24%) is holding below 16000. As mentioned yesterday, 16000 has to be breached to move up to 16400-16500 and negate the fall to 15400-15200. We will have to wait and watch.

Nifty (19347.45, +0.02%) is struggling to rise past 19500. It remains vulnerable to see 19100-19000 before a fresh leg of upmove begins targeting 19800-20000 on the upside.

Nikkei (32488.63, +0.48%) lacks strength to move up above 32500. Immediate support is at 32000. While that holds, a break above 32500 and rise toward 33000-33200 can be seen.

Shanghai (3140.74, +0.15%) is coming off from a high of 3154 seen yesterday. If the fall sustains, a dip towards 3100-3075 might be seen. Overall a broad range of 3225-3075 may persist for some time.

Commodities look bullish. Brent and WTI sustains higher above $ 85 (Brent) and $ 81 (WTI) respectively and may rise further on the upside. Gold has scope to test its resistance at 1985-1990. Silver and Copper remains bullish for the near term. Natural gas has rebounded towards 2.80 and has room to rise further towards 3.0 in the near term.

Brent ($ 85.20) is holding higher above $ 85. A rise past $ 86 is needed to open doors towards $ 88. On the downside, immediate support is seen near $ 83.

WTI ($ 81.60) sustains above $ 81. While above $ 81-80, there is scope for a rise towards $ 83-85.

Gold (1973.90) continues to rise. View remains bullish for a test of 1980-1985-1990 before a pause can be seen. In case it breaks above 1985-1990, a further rise towards 2020 can be seen.

Silver (25.01) tested 25.43 yesterday and has come off from there. Support is at 25-24.50. As long as it holds above these support, bias would remain positive for a rise towards 26.

Copper (3.8390) has risen towards 3.85. View remains bullish for a test of 3.90 in the near term. A further break above 3.90, if seen, can lead to a test of next resistance at 3.95.

Natural Gas (2.7880) has rebounded above 2.75. View remains bullish for a rise towards 3 as long as it holds above 2.50-2.45.

9:00 14:30 EU Unemp
Expn 6.4% …Expected 6.4% …Previous 6.4%

9:00 14:30 EU CPI (YoY) Flash Estimate
Expn 5.3% …Expected 5.1% …Previous 5.3%

12:00 17:30 IN GDP
Expn 5.6% …Expected 7.7% …Previous 6.1%

12:30 18:00 US Personal Income
Expn 0.4% …Expected 0.3% …Previous 0.3%

12:30 18:00 US PCE Price Index M/M
Expn 0.2% …Expected 0.2% …Previous 0.2%

DATA YESTERDAY:
————-
9:00 14:30 EU Biz Climate
Expn 92.2 …Expected 93.9 …Previous 94.5 …Actual 93.3

12:15 17:45 US ADP Emp
Expn – …Expected 201K …Previous 312K …Actual 177K

12:30 18:00 US GDP
Expn – …Expected 2.4% …Previous 2.4% …Actual 2.1%