Morning briefing: Dollar Index has broken below its support at 102.25

Vikram Murarka Kshitij Consultancy Services

Euro has strengthened as Dollar Index has broken below its support at 102.25. EURJPY and USDJPY have scope to test their immediate supports before a bounce back can happen. USDCNY can see a dip to 7.20 while it stays below 7.25. Pound looks bullish for a test of key resistance at 1.2950. Aussie and USDRUB are likely to be range bound for some time. USDINR has declined as the resistance at 82.75/80 has held well and can come down more from here. EURINR has broken above its crucial resistance of 90.80 and may advance further in the near term.

The US Treasury yields have dipped. They have to sustain above their support to avoid a fall and move up going forward. The German yields remain stable. The outlook is bullish to see a strong rise in the coming weeks. The 10Yr and 5Yr GoI have declined sharply. But supports are there to limit the downside and keep the chances alive of seeing more rise going forward.

Dow has rebounded and has scope to move up further from here. DAX and Shanghai have risen further but need to break above their resistance to strengthen the momentum further on the upside. Nifty is bullish while above the support at 19300-19200. Nikkei has bounced back as the support mentioned at 32000 has held well.

Brent and WTI are holding well below the resistance $79 and $75 respectively. Gold is likely to be range bound for some time. Silver and Copper are attempting to break above their immediate resistances.

Visit KSHITIJ official site to download the full analysis

Author

Vikram Murarka

Kshitij Consultancy Services

Vikram has been forecasting, trading and hedging currencies since 1991. Beginning his career as a currency trader in Essar Group, he was managing an FX exposure of $1.2 bln.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.