The Dollar Index can move toward 100-100.50 levels while it trades above 98.75/50. EURUSD has a scope to fall towards 1.160-1.155 while below 1.17. EURINR can trade within 104.50-106.00 region. EURJPY need to see a break past 185 to head toward 186-187 levels. While USDJPY will have to sustain above 158 to extend the rise toward 160-162 levels. USDCNY can fall toward 6.95-6.90 levels. Aussie & Pound are holding the 0.6650-0.6750 1.340-1.355 range respectively for now. USDINR is moving within the 89.75-90.25 range. The targets of 90.35-90.50 are kept open for now. US CPI & US New Home Sales are scheduled for release today.

Dollar Index (98.93) has a scope to rise towards 100.00-100.50 levels while it trades above the support around 98.75-98.50 levels.

EURUSD (1.1658) tested 1.1697 before coming down. While below 1.17, the targets of 1.160-1.155 levels can still get achieved.

EURINR (105.1531) can trade within a range of 104.50-106.00 for some time before a breakout occurs.

EURJPY (184.84) is trading near the upper end of its 182-185 range. A break past 185 will be needed to test the resistance around 186-187 region.

Dollar-Yen (158.57) has finally broken above 158 on news of the LDP likely dissolving the Lower House and calling a snap election in February. If USDJPY sustains above 158, a move towards 160-162 looks possible in the coming weeks..

USDCNY (6.9762) can extend the fall towards 6.95 or even 6.90 in the coming weeks while it trades below 7.

Aussie (0.67119) is consolidating within the 0.6650–0.6750 range. While the outlook remains bearish below 0.68, a break below 0.66 is needed to confirm further downside. Until then, the 0.6650–0.6570 range may hold.

Pound (1.3474) had initially slipped to the low of 1.3389 but soon it recovered from there. Currently the 1.3400-1.3550 range is holding well and a break on either side will be needed for further clarity.

USDINR (90.2170) is trading higher within 89.75-90.25 range. A sustained break above 90.25 will be needed to bring 90.35-90.50 levels into picture.

The US Treasury yields have inched up within its range. The near-term picture continues to remain mixed. We will have to wait for the range breakout to get clarity on the next direction of move. The German yields are struggling to rise above their resistance. That leaves them vulnerable for a fall in the coming days. The 10Yr GoI has recovered well after a short-lived intraday fall. The bias remains bullish while it sustains above its support.

The US 10Yr (4.18%) and 30Yr (4.83%) Treasury yields have inched up within their 4.1%-4.2% (10Yr) and 4.78%-4.9% (30Yr) range. The immediate outlook remains mixed, and we will have to wait for the range breakout.

The German 10Yr (2.81%) and 30Yr (3.45%) yields seem to be struggling to rise. That keeps the chances alive of seeing 2.75%-2.7% (10Yr) and 2.35% (30Yr) on the downside. A rise above 2.85% (10Yr) and 3.5% (10Yr) is needed to negate this fall.

The 10Yr GoI (6.6050%) spiked down to a low of 6.4964% but then has risen back from there. While above 6.55%, the bias remains positive to see 6.7% on the upside.

The Dow and DAX are headed towards resistances near 50,000 and 26,000 respectively from where rejection looks possible. The immediate view is bullish till the resistance levels are tested. Nifty bounced yesterday, holding above 25600 and could rise slowly towards 26000 and higher. Japan’s ruling Liberal Democratic Party is expected to dissolve the country’s Lower House later this month and opt for a snap election likely in Feb-26. Nikkei has surged well today, rising by more than 3%. The rise to our expected resistance at 54,000 can be seen much sooner from where a correction is possible. Shanghai could rise in the near term but could face resistance near 4150-4200 from where a dip looks possible in the medium term.

The Dow (49590.20, +0.17%) is headed towards immediate resistance at 50000 from where a rejection looks possible towards 49000 again. A rise past 50,000 will be needed for the index to rise straight towards upper resistances near 51,000 and 52,000 respectively. Watch price action near 50,000.

DAX (25405.34, +0.57%) is headed towards resistance at 26000 from where a rejection looks possible in the medium term.

Nifty (25790.25, +0.42%) rise yesterday, holding above 25600 as expected. It needs to rise further towards 26000+ to move up towards 26500 soon.

Nikkei (53615.96, +3.23%) has surged. Japan’s ruling Liberal Democratic Party is expected to dissolve the country’s Lower House later this month and opt for a snap election likely in Feb-26. The rise to 54000 is likely seen much faster than expected. Need to see if there is a correction from there in the near term. Else a break above 54000 will become further bullish for the index.

Shanghai (4155 62, -0.23%) tested 4171 before coming off slightly. There is immediate resistance near the 4150-4200 region which needs to be broken on the upside for a sharp upmove in the coming days. Else a correction while below 4200 can take it down towards 4100-4000 again in the medium term.

Brent and WTI are testing key resistances near $ 64 and $ 60. They need a sustained breaks above these levels to move higher towards $ 66–$ 68 and $ 62–$ 64. Gold is holding above $ 4,600 with scope for $ 4,650–$ 4,700. Silver remains bullish after a fresh high near $ 86 with upside towards $ 88–$ 90. Copper is above $ 6 and can extend gains to $ 6.10–$ 6.20. Natural Gas stays weak below $ 3.5, keeping downside risks towards $ 3.00.

Brent ($ 64.04) is testing the immediate resistance near $ 64. A sustained break above this level is required for a move higher towards $ 66–$ 68. Otherwise, it can fall back towards $ 60–$ 58.

WTI ($ 59.68) needs a sustained break above $ 60 to move higher towards $ 62–$ 64. Failing that, it can retreat towards $ 58–$ 56.

Gold ($ 4,603.30) has moved above $ 4,600 and can head higher towards $ 4,650–$ 4,700 in the coming sessions.

Silver ($ 85.29) has surged to a fresh high of $ 86.34 yesterday, in line with our expectations. Further upside towards $ 88–$ 90 remains likely in the near term.

Copper ($ 6.02) has risen above $ 6, in line with our expectations. A further rise towards $ 6.10–$ 6.20 can be seen in the coming sessions.

Natural Gas ($ 3.3440) has bounced back, but while it trades below $ 3.5, we retain our view of a decline towards $ 3.00 in the near term.

13:30 19:00 US CPI
0.1 …Expectations 0.3 …Previous 0.2

13:30 19:00 US Core CPI
0.1 …Expectations 0.3 …Previous 0.2

15:00 20:30 US New Home Sales
789 …Expectations 715 …Previous 800

DATA YESTERDAY
================
GMT 12:00 IST 17:30 IN CPI
1.74 …Expectations 1.5 …Previous 0.71 …Actual 1.33