Morning briefing: The US treasury yields remain higher and stable
|Weaker-than-expected US ISM at 47.90 (48.30) and comments from a Fed official indicating that unemployment could rise further led to a decline in the Dollar Index. The Dollar Index can trade within 98.85-97.75 region for a while. EURUSD has risen above 1.17 again but faces immediate resistance between 1.1750-1.1800. EURINR is trading within 105-106.25 region. EURJPY & USDJPY continues to hold the 183-185 & 158-154 range respectively for now. USDCNY can fall towards 6.95 or even further in the near term. Aussie & Pound have bounced well and if sustained, can test 0.68 & 1.36/365 respectively in the near term. USDINR has risen well so far and has a scope to move towards 90.50 or slightly higher while it trades above 90.00. IN Services PMI is scheduled for release today.
The US Treasury yields remain higher and stable. The bias on the 30Yr is bullish. That can aid the 10Yr also to breach its resistance and go higher in the coming days. The Germany Yields have come down. The resistance has held very well. Failure to bounce back can drag the yields down in the coming days. The 10Yr GoI has risen well. The outlook is bullish. The GoI can rise more going forward.
Most indices look bullish and are nearing our earlier mentioned targets. The Dow is headed towards 49000-49500 while the Dax is moving towards resistance near 25000. Nifty could rise to 26500 while above 26100-26000. Nikkei and Shanghai have surged well and could test 54000 and 4100 sooner than expected.
Crude prices have risen on geopolitical tensions but can remain range-bound between $62–$58 (Brent) and $59–$55 (WTI). Gold is inching higher and can move towards $4500–$4600. Silver has surged and may rise further to $79–$80. Copper jumped on US stockpiling concerns and a break above $6 can take it to $6.10–$6.20. Natural gas is testing support near $3.40, with scope to rebound towards $3.60–$3.80.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.