The Dollar Index has slipped below 98 and can extend the fall to 97 or 96 max before attempting to rise back again. EURUSD can head towards 1.1750-1.1800 as mentioned earlier. EURINR needs a decisive break past 102.50 to head towards 103-104. EURJPY & USDJPY have turned lower from 173.02 and 148.17 itself. A further fall to 171-170 and 146-145 can happen respectively. USDCNY can also fall further within its broad range of 7.20-7.14. The Aussie and Pound are headed towards 0.66/6650 and 1.36/3650 respectively. USDINR yesterday slipped to the low of 87.38 but later recovered as well. While the deeper support at 87.25 holds, the target of 87.80-88.00 is kept open for now. IN WPI, IN Trade Balance and US PPI are some of the important releases scheduled today.

Dollar Index (97.67) has slipped below 98 and can test the crucial support between 97-96 before attempting to bounce back again. Overall, while above 97/96, a fresh rally can begin in the medium term.

EURUSD (1.1712) ended its narrow consolidation zone of 1.16-1.17 by breaking higher. An immediate resistance is coming around 1.1750-1.1800 which can be tested if the rise extends further. Thereafter, if the resistance holds, a range of 1.18-1.14 can persist for some time

EURINR (102.4330) needs to see a sustained break above 102.50 to head towards 103-104. Immediate support at 101.50.

EURJPY (171.55) and Dollar-Yen (148.13) started coming off from 173.02 and 148.17 itself. If the fall extends further, then a test to 171-10 and 146-145 can happen respectively in the coming sessions. The upper targets of 174-175 and 150-151 are kept on hold until further clarity.

USDCNY (7.1680) has fallen below its 7.1900-7.1750 range. A further fall within its broad range of 7.20-7.14 looks possible in the near term.

Aussie (0.6562) is rising as anticipated and while above 0.65, a test to 0.6600-0.6650 can happen soon. Overall, a range of 0.64-0.66/6650 is likely to hold for a while.

Pound (1.3581) has risen as expected and if sustained, can soon test the resistance between 1.3600-1.3650 region before halting.

USDINR (87.4080) slipped below immediate range of 88.00-87.50 to the low of 87.38 before recovering a bit from there. Deeper support is coming at 87.25, above which the target of 87.80-88.00 is kept alive for now.

The US Treasury yields have dipped and could test 4.20% (10yr) and 4.75/70% (30yr) before rebounding to higher levels. The German yields have also dipped yesterday but the overall view is bullish while above the near term support levels. The 10Yr GoI tested 6.3911% but managed to bounce back well indicating underlying bullish momentum. An initial test of 6.55/58% is possible. Thereafter a decisive break above 6.58%, if seen can be further bullish in the medium term.

The US 10Yr (4.231%) and 30Yr (4.822%) Treasury yields have dipped yesterday after a decent rise seen a day before. The near-term upside has not been able to break above 4.3%-4.35% (10Yr) as expected but there is a decent support coming up at 4.20% which needs to hold for a rebound. The 30yr has also dipped and could have scope to test 4.75/70% while below 4.90/95%.

The German 10Yr (2.677%) and 30Yr (3.2337%) yields have declined. but overall bullish view is intact to see 2.8% (10Yr) and 3.3% (30Yr) on the upside, while above 2.6% (10Yr) and 3.10% (30Yr).

The 10Yr GoI (6.4811%) tested 6.3911% but managed to rise back to close above 6.48%. As mentioned yesterday, there is a crucial resistance near 6.55/58% which if holds can take the yield down to 6.3/6.2% in the next week. A decisive break above 6.58% would be needed for the current up move to extend further in the long run.

The Dow and Dax are trading higher. A decisive break above 45000 and 24000, both could head higher towards 46000-47000 and 25000 soon. Nifty could attempt to rise towards 24850 in the near term while above 24400. Nikkei appears bullish for the medium term, targeting 44000, while Shanghai has tested crucial resistance at 3700 and may face rejection from here.

The Dow (44922.27, +1.04%) has been rising sharply almost nearing our expected resistance at 45000. A decisive break above 45000 will be needed to target 46000-47000 eventually.

DAX (24185.59, +0 67%) has risen well yesterday and while above 24000, it could head towards resistance at 25000 soon. Overall view is bullish for the near term.

Nifty (24619.35, +0.54%) rise too and could head towards 24800-24850 in the very near term. Thereafter, whether the price manages to break higher will have to be seen for an extended rise towards 25000. The view is bullish above 24400.

Nikkei (42686.73, -1.36%) has dipped today after rising for alomost 8-sessions. There is scope for a rise to 44000-46000 in the medium term while above 42000 with minimal corrective dips.

Shanghai (3698.50, +0.41%) has tested resistance at 3702 as expected. It would be crucial to see if the index can move up further above 3700 or decline towards 36500 or lower in the coming sessions.

Brent and WTI prices fell further on bearish inventory data and forecasts, with more downside expected in the near term. Gold is holding above $ 3,400 and could rise further unless it breaks lower. Silver is breaking resistance and may climb higher towards $ 40, while Copper is attempting an upside breakout targetting $ 4.60-4.80. Natural gas remains biased for a decline towards $ 2.75-2.70 despite a slight rise.

Brent ($ 65.97) fell to a low of $ 65.01 due to a bearish weekly EIA crude inventory report showing +3.0 million bbls and a bearish oil surplus forecast by the International Energy Agency. A further decline towards $ 64–$ 62 is possible in the near term.

WTI ($ 62.92) fell to a low of $ 61.94 yesterday, in line with our expectations, and can decline further towards $ 62–$ 60 in the near term.

Gold ($ 3,415.20) is inching up slowly above $ 3,400. While above this level, it can extend the rise to $ 3,450–$ 3,500 in the near term. A sustained break below $ 3,400 is needed for it to fall towards $ 3,350.

Silver ($ 38.76) is breaking above its immediate resistance as expected, and a sustained break could take prices higher towards $ 39.50–$ 40.00 in the near term.

Copper ($ 4.5110) is attempting to break above the mentioned range of $ 4.50–$ 4.30. A sustained break could push prices higher towards $ 4.60–$ 4.80 in the coming weeks.

Natural Gas ($ 2.8350) has risen slightly, but the outlook remains intact for a fall towards $ 2.75–$ 2.70 in the coming sessions.

1:30 07:00 Australia Labour Force
…Expectation 25.30 …Previous 1.98

6:00 11:30 UK Trade Bal GBP (Bln)
…Expectation -21.7 …Previous -21.7

6:00 11:30 UK GDP
…Expectation 0.1 …Previous 0.7

6:30 12:00 IN WPI
…Previous -0.13

9:00 14:30 EU Ind Prodn (MoM)
…Expectation -0.9 …Previous 1.7

9:00 14:30 EU Flash GDP
…Expectation 0.1 …Previous 0.1

9:00 14:30 IN Trade bal
…Previous -18.78

12:30 18:00 US PPI
…Expectation 0.2 …Previous 0.0

12:30 18:00 US PPI ex Food & Energy (MoM)
…Expectation 0.2 …Previous 0.0

DATA Yesterday
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No Major Data Releases Yesterday