The Dollar index has declined below 99 and looks bearish for the near term with the Euro likely to head towards 1.17. USDJPY and EURJPY have plunged yet again and looks strongly bearish towards 150-148 and 175/170. EURINR could have limited upside to 110-110.50. Aussie and Pound lookk bullish. USDCNY has dipped as expected and can test 6.70. USDINR can continue to trade within 94.80-94.25 range for a while with some possibility of testing 94.

Dollar Index (98.785) fell from 99.49 seen in yesterday’s edition and could test 98.50 soon. A decisive break below 98.50 is needed for the index to decline further towards 98 else a bounce from 98.50 can be expected.

EURUSD (1.1631) has scope to rise to 1.17 in the near term while above 1.16. The dip in the Dollar Index could support the expected rise.

Dollar-Yen (153.42) has plunged further. If this momentum continues, we may soon expect a decline to 150-148 soon. Overall near term view is bearish contrary to our expectations of seeing a slow recovery towards 157/158.

EURINR (109.9093) has risen but could have limited upside in the near term to 110-110.50.

EURJPY (178.31)   has plunged too and could decline further to test 175-170 soon.

USDCNY (6.7098) has declined below 6.71 and looks bearish for a fall to 6.70 or slightly lower in the near term.

Aussie (0.7214)   is headed towards 0.73-7350 in the near term.

Pound (1.3546) needs to hold well above 1.3450 for a rise towards 1.37-1.3750 in the medium term.

USDINR (94.49) traded below 94.50 yesterday and has scope to trade in the broad 94.80-94.25 region for the near term with some scope of a seeing a test of 94.

The US Treasury Yields remain stable in the early Asian session. The US markets were closed yesterday. The outlook remains bullish. The Treasury Yields can rise more from here. The German Yields have risen well. A follow-through rise from here can take them further higher in the coming days. View is bullish. The 10Yr GoI remains stable. As mentioned yesterday, a narrow range is possible for some time before we get more rise eventually.

The US 10Yr (4.79%) and 30Yr (5.25%) yields remain bullish to see 4.9%-5% (10Yr) and 5.4% (30Yr) on the upside. Immediate support is at 4.75%-4.73% (10Yr) and 5.2% (30Yr).

The German 10Yr (3.38%) and 30Yr (3.85%) Yields have risen well. The 10Yr has breached 3.35%. If this sustains, a rise to 3.5% can be seen from here. The 30Yr has to get a sustained break above 3.85% to go up to 4%.

The 10Yr GoI (6.9607%) remains stable above 6.95%. While above 6.9%, we prefer to see a rise to 7.15%.

Dow remains range-bound between 52500-54000, while DAX can rise towards 26500. Nifty has slipped below 23800, keeping the downside risk open towards 23600-23500. Nikkei remains positive and can rise towards 67000-68000. Shanghai is likely to continue trading within the 3850-4000 range while below 4000.

Dow (53121.78, -0.60%) has dipped further and can continue to trade within the range of 52500-54000 for some time.

DAX (26053.17, +0.17%) can rise towards 26500.

Nifty (23,779.15, -0.50%) has slipped below 23800, as we had cautioned earlier. While it remains below 23800, the downside risk remains open towards 23600-23500 in the coming week.

Nikkei (66415.58, +0.97%) has risen and can see a further rise towards 67000-68000.

Shanghai (3943.57, +0.30%) can continue to trade within the range of 3850-4000 for some time while below 4000.

Brent and WTI continue to move higher in line with our expectations and can rise towards $ 100 and $ 95 respectively. Gold remains positive above $ 4300 and can rise towards $ 4600. Silver needs a sustained break above $ 70 for a move towards $ 75-$ 80. Copper is testing the key $ 6.80 resistance, with a break above it opening the way towards $ 6.90-$ 7.00, while a failure could lead to a dip towards $ 6.70-$ 6.60. Natural Gas needs to sustain above $ 3.00 for a rise towards $ 3.25-$ 3.50.

Brent ($ 97.11) and WTI ($ 92.48) are moving higher in line with our expectations and can rise towards $ 100 and $ 95 respectively in the near term.

Gold ($ 4482.70) needs to sustain above the support near $ 4300 to keep alive the chances of a rise towards $ 4600.

Silver ($ 67.63) needs a sustained break above $ 70 to move higher towards $ 75-$ 80.

Copper ($ 6.80) has soared to a high of $ 6.80 and needs a break above this immediate resistance to see a further rise towards $ 6.90-$ 7.00. Otherwise, it can dip back towards $ 6.70-$ 6.60.

Natural Gas ($ 2.95) needs a sustained break above $ 3.00 to move higher towards $ 3.25-$ 3.50.

23:50 05:20 JP GDP
…Expected 0.4% …Previous 0.3% …Actual 0.4%

DATA YESTERDAY:-
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EU GDP
…Expected 0.4 % …Previous 0.4 % …Actual 0.6 %