The DXY can decline towards 96.00-95.50 in the near term. While, EURUSD can attempt to rise towards 1.20 and higher. EURINR can target 109-110 while it stays above 107. EURJPY is coming off within its 187.50-182.50 range. USDJPY can fall towards 153-152 levels before rebounding later on. USDCNY can drift toward 6.90-6.85 levels. The Aussie has moved past 0.71 and if sustained, can test 0.7150-0.7200 levels in the near term. Pound need to sustain above 1.365 to head toward 1.38 and higher levels. USDINR can remain ranged within 90-91 region for now. US NFP, US Unemployment & US Avg Hrly Earnings data are scheduled for release today.

Dollar Index (96.81) tested the low of 96.60 before recovering a bit. The DXY has a scope to extend the fall towards 96.00-95.50 in the coming sessions while it remains below 97.50.

EURUSD (1.1908) can head towards 1.20 and higher while it remains above the immediate support around 1.1850-1.1800.

EURINR (107.7945) has declined a bit from the high of 108.16 but the target of 109 and 110 are kept open while it remains above 107

EURJPY (183.16) has extended the fall further due to strength in Yen. Immediate support is coming around 183 region which if held can take the EURJPY higher again. Overall, a broad 187.50-182.50 range can continue to hold in the near term.

Dollar-Yen (153.78) is coming off in line with our view and can soon test the interim support near 153 or lower at 152 before rebounding.

USDCNY (6.9092) is slowly inching lower and can test our targets of 6.90-6.85 levels in the medium term.

Aussie (0.7120) has indeed risen past 0.71 and if sustained, can test 0.7150-0.7200 levels before getting peaked out.

Pound (1.3657) tested a high of 1.3696 before turning lower. The pair need to sustain above 1.365 to head towards 1.38 and higher levels. Else, if the decline extends, initial support near 1.355-1.350 zone can get tested before a rebound occurs.

USDINR (90.5250) is expected remain ranged within 90-91 range for some time.

The US Treasury yields have come down further sharply. The fall is in line with our expectation, but the pace of fall is a surprise. There is room to fall further from here before a reversal is seen. The Retail Sales for December at 1.98% (YoY) down from 2.94% (November) triggered this fall. The unemployment rate data release today will need a close watch. The German Yields are coming down in line with our expectation. They can fall more. The 10Yr GoI has come down but support is there to limit the downside. The yield can reverse higher from this support and resume the upmove.

The US 10Yr (4.14%) and 30Yr (4.78%) Treasury yields are coming down towards 4.1% (10Yr) and 4.75% (30Yr) in line with our expectation. The price action thereafter will need a watch to see if a reversal is happening or not.

The German 10Yr (2.81%) and 30Yr (3.49%) yields are falling as expected and are coming close to 2.8% (10Yr) and 3.45% (30Yr) in line with our expectation. A bounce is possible thereafter.

The 10Yr GoI (6.7246%) has come down. Support is there at 6.7%. While that holds, the yield can rise back to 6.8%.

The Dow and the DAX need to break above 50500 and 25000 respectively to move up further else could soon see a correction from current levels itself. Nifty is headed towards 26000 and higher. Nikkei continues to rally and targets 58000-58500 before pausing for a correction while Shanghai is rising towards 4200 as expected.

The Dow(50188.14, +0.10%) trades slightly higher. A break above 50500 is needed to test 52000.

DAX (24987.85, -0.11%) has fallen below 25000. Unless an immediate bounce is seen, the DAX could continue to dip towards 24800/24500 in the near term.

Nifty (25935.15, +0.26%) has been slowly rising. A test of 26000-26500 could be in the cards for the near term. The overall view is bullish.

Nikkei (57650.54, +2.28%) is headed towards our target of 58000-58500.

Shanghai (4128.54, -0.0042%) remains bullish to test 4200 before a pull back is seen towards 4100-4000.

Brent and WTI continue to trade within their respective ranges of $ 70–$ 66 and $ 66–$ 62, awaiting a decisive breakout. Gold is struggling below $ 5100 and needs a sustained move above it to target $ 5300–$ 5500, else it risks slipping towards $ 4800–$ 4700. Silver faces resistance near $ 90, which could cap gains and push it down to $ 70–$ 65. Copper must rise past $ 6.00 to strengthen towards $ 6.20–$ 6.40, while Natural Gas holds above $ 3.10 and can bounce towards $ 3.30–$ 3.50 as long as this support remains intact.

Brent ($ 69.02) can trade within the range of $ 70–$ 66 until a breakout on either side takes place.

WTI ($ 64.62) can remain within a range of $ 66–$ 62 for some time.

Gold ($ 5074.60) is struggling to break above $ 5100, and a sustained move above this level is required to extend gains towards $ 5300–$ 5500. Otherwise, it remains vulnerable to a decline towards $ 4800–$ 4700.

Silver ($ 82.07) faces moving average resistance near $ 90, which could cap the upside in the near term and trigger a fall towards $ 70–$ 65.

Copper ($ 5.9275) needs a rise past $ 6.00 to move higher towards $ 6.20–$ 6.40.

Natural Gas ($ 3.1340) is trading above the immediate support near $ 3.10. While this support holds, a bounce back towards $ 3.30–$ 3.50 can be seen.

GMT 13:30 IST 19:00 US NFP
…Expectations 70 …Previous 50

GMT 13:30 IST 19:00 US Unemployment Rate
…Expectations 4.4 …Previous 4.4

GMT 13:30 IST 19:00 US Avg Hrly Earnings
0.4 …Expectations 0.3 …Previous 0.3

GMT 13:30 IST 19:00 US Average Hourly Earnings Production & Non Supervisory Employees
…Previous 0.1

DATA YESTERDAY
================
GMT 13:30 IST 19:00 US Retail Sales
0.6 …Expectations 0.4 …Previous 0.6 …Actual 0.0