The Dollar Index continued to rise on strong US Retail Sales data
|The Dollar Index continued to rise on strong US Retail sales data but could face rejection near 107.50 in the near term, while the Euro is headed towards 1.06-1.055 from where a short bounce can be possible. EURJPY trades higher within the 162-165 region while USDJPY has risen above our expected resistance at 154 and is now likely to test 155-156 in the near term. Aussie and Pound are nearing their supports at 0.64 and 1.24 respectively from where they could move up in the coming sessions. USDCNY remained flat during the day. EURINR could bounce towards 89.50 in the next few sessions while above 88. USDINR may remain below 83.50 on RBI's intervention else a weaker Euro below 1.06, if seen, could drag USDINR above 83.50 soon.
The US Treasury yields have surged back again. A strong break above the immediate resistances can take the yields further higher in the coming days. The German yields have also risen back sharply and are now poised at the upper end of their range. We will have to wait and watch if the yields are making a bullish range breakout from here. The 10Yr and 5Yr GoI remained higher but stable. The outlook is bullish, and the yields can rise more from current levels.
Dow Jones and Nikkei remains bearish for the near term. DAX and Shanghai look mixed and range bound. Nifty indeed broke below its support of 22500 as expected and has scope to test 22000 on the downside.
Crude prices looks range bound. Metals have recovered well contrary to our view to see a fall in the near term. There is room to rise more from here for Metals. Natural Gas can trade sideways within 2.00-1.50 with a bearish view.
Visit KSHITIJ official site to download the full analysis
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.