Kshitij Consultancy Services Team
Kshitij Consultancy Services
Good Morning!
The US Dollar faced selling pressure near 106.50 while the Euro has managed to bounce from 1.06 and could rise to 1.07/0750. EURJPY could trade within 165-162 region while USDJPY needs to hold above 154 else can decline towards 153/152 soon. Aussie and Pound have managed to bounce from 0.64 and 1.24 but there could be some more room for a fall towards supports at 0.63 and 1.23/22 in the medium term. USDCNY may fall towards 7.22 while below 7.24. EURINR could rise towards the upper end of the 88-90 range. In USDINR, it would be crucial to watch price action near 83.50/55. A make or break from this level will drive the next course of action on the pair.
The US Treasury yields remain stable and higher. A strong follow-through rise from here will avoid a fall-back and take the yields higher going forward. We will have to wait and watch. The German yields are poised at the upper end of their range. Need to wait and see if they are making a bullish breakout and rise further from here or reversing lower to keep the range intact. The 10Yr and 5Yr GoI remains bullish and have room to rise further from here.
Dow Jones, DAX and Nikkei have room to fall further in the near term. Shanghai has scope to see a break on the upside of its sideways range. Nifty is coming down towards its supports. Need to see if that holds and produces a bounce back or not.
Crude prices have fallen sharply after Wednesday's weekly EIA report showed that crude inventories have risen more than expected. Gold, Silver and Copper have dipped but have near term supports which may hold and lead to a rise towards our expected level. Natural Gas can trade sideways within 1.50-2.00 for a while.
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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.
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