The Dollar Index looks stable within its range of 106.50-105.50/105, while the Euro needs to sustain above current levels to test 1.08. EURJPY and USDJPY have moved up sharply, above our mentioned targets of 168 and 158 respectively. Price action around current levels would be important to watch as to whether they would rise further or not. Aussie and Pound have the potential to rise towards 0.66 and 1.2550/1.26. USDCNY might trade within 7.24-7.25 for a while. EURINR may remain ranged within 88.50-89.50/90 region. USDINR can remain below 83.40 and trade within 83.40-83.20 for a while before eventually breaking higher towards 83.50-83.60 in the coming weeks.

Dollar Index (105.95) continues to trade within 106.50-105 region while EURUSD (1.0718) tested a high of 1.0753 on Friday, before slipping down. Now, the pair needs to stay above current levels and break past 1.0750 to test 1.08 on the upside.

EURJPY (170.67) and Dollar-Yen (159.25) have rallied, exceeding our mentioned targets of 168 and 158 respectively after the BOJ Governor Kazuo Ueda stated that the weak yen so far has not had a big impact on Japan’s inflation trend. Now it has to be seen whether the currency pairs continue to rise further above 172 and 160 or come down towards 168 and 154 respectively.

USDCNY (7.2462) is headed towards 7.25 and the narrow range of 7.24-7.25 may hold for a while.

Aussie (0.6564) has broken above 0.6550 and is gradually rising towards 0.66 within its range of 0.64-0.6650 which can persist for a while.

Pound (1.2526) is nearing our mentioned targets of 1.2550-1.26 and can soon test it before heading down towards 1.24/2350 in the coming sessions. Overall, a broad range of 1.2350-1.26 could hold for some time.

USDINR (83.3450) is currently trading near the upper end of its 83.40-83.20 range and could hold for some more time.

EURINR (89.3716) had risen past our expected range of 88.50-89.50 on Friday but could not sustain and fell after testing 83.5855 on the upside. Currently, it is back within the range and unless a decisive break past is seen on either side, the range may hold for a while. A broad range of 88.50-90 could persist for a while.

The US Treasury yields have come down slightly but supports are there to limit the downside and keep the upside open for more rise. The German yields have come down sharply. But the broader trend is up and the downside could be limited. We can expect the yields to rise back and move higher in the coming days. The 10Yr and 5Yr GoI are oscillating in a sideways range. This could just be a consolidation within the overall uptrend.

The US 10Yr (4.67%) and the 30Yr (4.78%) yields have come down on Friday. While above 4.6%, the 10Yr is bullish to see 4.75%-4.8% on the upside. The 30Yr on the other hand can rise to 5% on a strong break above 4.8%.

The German 10Yr (2.57%) and the 30Yr (2.71%) yields have come down sharply. The trend is up. While above 2.5%, the 10Yr can rise to 2.8%. The 30Yr can breach 2.8% and rise to 3% while it sustains above 2.6%.

The 10Yr GoI (7.1870%) and the 5Yr GOI (7.1874%) have been oscillating up and down within a range. The trend is up but there is lack of strong follow-through rise. Both the 5Yr and 10Yr are stuck between 7.15% and 7.25%. The bias is bullish to see a rise to 7.3% (10Yr) and 7.3%-7.4% (5Yr).

Dow Jones has bounced above 38000 but is likely to face resistance at 38500. DAX has recovered above 18000 contrary to our bearish view. If it sustains, a further rise towards 18400-18500 can be seen. Nifty fell sharply on Last friday but might get support at current levels or at 22000. Shanghai is attempting to break above the upper end of the sideways range and looks bullish to target further upside.

Dow (38239.66, +0.40%) has bounced above 38000. Can test 38500. But the broader picture is negative to see a fall back towards 37200-37000 eventually in the coming weeks.

DAX (18161.01, +1.36%) has risen back above 18000. If it manages to sustain above it, then a rise to 18400-18500 is possible this week which in turn will reduce the chances of the fall to 17600. It is a wait and watch.

Nifty (22419.95, -0.67%) has come down failing to sustain above 22500. While above 22000, the chances are still alive to see a rise to 23000 in the coming days.

Nikkei (37934.76) is closed today. However, a rise towards 39000 is possible while it stays above 37500-37000.

Shanghai (3106.01, +0.56%) is attempting to break above the upper end of the 3000-3100 sideways range in line with expectation. It can rise towards 3150-3200 in the near term. Supports are at 3000-2950.

Crude prices and Precious Metals are likely to trade sideways for a while. Copper remains bullish for the near term. Natural Gas lacks strength but has scope to see an eventual rise while above the support at 1.90-1.80.

Brent ($ 87.50) and WTI ($ 83.14) to trade within $ 90-85 and $ 85-80 range for some time.

Gold (2342.40) has dipped after testing 2364. Resistance at 2370 and support at 2300 is likely to hold for a while.

Silver (27.55) is holding well below the resistance at 28 and while below 28, it is expected to trade sideways within 28-26.50 range for some time.

Copper (4.5930) has moved up towards 4.60. Support is at 4.50. While that holds, it may break above 4.60 and rise further towards 4.65-4.70.

Natural Gas (1.9480) lacks strength to rise past 2.00. However, the support at 1.9-1.8 are expected to hold and lead to a rise towards 2.1-2.2.

9:00 14:30 EU Biz Climate
Expn – …Expected – …Previous 96.3

Data Yesterday
…………..
23:05 04:35 UK Cons Conf
Expn -19 …Expected -20 …Previous -21 …Actual -19

1:30 07:00 AU PPI
Expn – …Expected – …Previous 0.9% …Actual 0.9%

3:00 08:30 BOJ Meeting
Expn – …Expected 0.1% …Previous 0.1% …Actual 0.1%

12:30 18:00 US Personal Income
Expn 0.5% …Expected 0.5% …Previous 0.3 …Actual 0.5

12:30 18:00 US PCE Price Index M/M
Expn 0.3% …Expected 0.3% …Previous 0.3% …Actual 0.3

12:30 18:00 US Core PCE Price Index M/M
Expn 0.3% …Expected 0.3% …Previous 0.3% …Actual 0.3%