Morning briefing: Euro is holding well in respective ranges of 1.1700-1.1600
|The Dollar Index and Euro are holding well in their respective ranges of 100-98 and 1.17-1.16. EURINR can fall towards 101.50-101.00 in the near term. EURJPY & USDJPY have the scope to head towards 173/74 and 150 respectively in the coming sessions. USDCNY is stuck within 7.1750-7.1900. The Aussie is coming off but overall, it can trade within 0.66-0.67 region for some time. The Pound has also turned lower and while below 1.35, it can be vulnerable to fall back towards 1.32 in the near term. USDINR has risen a bit and while above 87.50, a further rise within the 87.50-88.00 range is possible. The RBA meeting and the US CPI data release is scheduled today.
The US Treasury yields remain stable. The upside is limited from here. We expect the yields to reverse lower after testing their upcoming resistance. The US CPI data release will need a close watch. A high inflation number will be positive for the yields. The German yields remain higher and keeps the bullish view intact. They can rise more from here. The 10Yr GoI has risen well. The outlook is bullish, and the yields can rise further.
The Dow and Dax have dipped slightly yesterday ahead of the US CPI data release today where markets expect the inflation to accelerate amid the ongoing tariff concerns, Both indices can trade within a broad range of 43000-44500 and 23500-25000 respectively. Nifty recovered well yesterday but watch piece action near resistances near 24650 and 24800-24850 region for any near-term rejection. Nikkei and Shanghai look bullish towards 43000 and 3700 respectively.
Brent and WTI have seen slight rebounds but remain biased for declines towards $64–$62 and $62–$60 respectively. Gold and Silver are likely to fall further towards $3,350 and $37.00. Copper is expected to trade in the $4.50–$4.30 range, and Natural gas may drop to $2.85–$2.80 despite a recent rise to $3.00.
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