Vikram Murarka
Kshitij Consultancy Services
The Dollar Index trades lower while the Euro can rise towards 1.09 before pausing. USDJPY and EURJPY could dip slightly to 148.80 and 161.80 in the very near term. Aussie could have a limited upside to 0.68 for now while Pound needs to break above 1.31 to rise further. USDCNY can trade within 7.1240-7.10 with a possible dip to 7.08. USDINR is likely to remain ranged within 84.12-83.98 region. EURINR needs to break above 91.50 to take it higher towards 92 else can come off towards 91 or lower.
The US Treasury yields sustain higher. They still keep alive the chances of seeing an extended rise before reversing lower to resume the downtrend. Only a fall below the immediate support will negate this rise. The German yields will need a strong follow-through rise from here to strengthen the bullish case to move higher. Else they can fall back again. It is a wait and watch situation. The Indian 10Yr GoI is moving up within the broad range. The bias is bullish to break the range on the upside and move higher eventually.
The Dow Jones remains stable above 43200, maintaining a bullish outlook with potential to reach 44000. The DAX has advanced beyond 19650 and is expected to continue its rally towards of 19800-20000. Nifty has recovered well from a low of 24567, climbing above 24800 on Friday. A decisive break above 25000 is necessary to mitigate downside risks. Nikkei continues to oscillate around 39000 and currently trades above it. While it holds above 39000, an attempt to rise towards 39500-40000 can be seen. Shanghai, on Friday attempted to rise past 3300 to a high of 3310 but failed to sustain there and retraced back to the sideways range of 3200-3300.
China's weak crude demand has weighed on Crude oil prices. Also, crude is under pressure on speculation that Israel's killing of Hamas leader Sinwar could lead to a cease-fire in Gaza that eases Middle East tensions. Immediate support levels need to break on the crude prices to make them bearish or else a bounce back to $75-76 on Brent and $70-72 on WTI can be expected in the near term. Gold and Silver have moved up sharply. Near term looks bullish towards $2750-2770 and $34.5-35.0 respectively. Copper can range between 4.50-4.30/25 for some time. Natural Gas looks bearish towards 2.2-2.0.
Visit KSHITIJ official site to download the full analysis
The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.