Morning Briefing: Dollar Index and Euro are ranged within 101-103 and 1.08-1.09 region
Most currencies look stable. Dollar Index and Euro are ranged within 101-103 and 1.08-1.09 region. Pound can trade within 1.22-1.25 while EURJPY can trade within 143-140. USDJPY can limit its downside to 129 while upside can be capped at 130/131. Aussie is bearish below 0.72/0.7150. USDRUB has dipped within the 68-70 region. USDINR can trade within 81.40-81.80 while EURINR can be bearish while below 89.
The US Treasury sustains higher but needs to get a strong follow-through rise from here to avoid a fall again. The German yields look bullish in the short-term while they continue to sustain above their support. The 10Yr GoI has room to rise further while the resistances can cap the upside on the 5Yr GoI and keep it pressured to fall again.
Dow sustains higher and remains bullish. DAX is bullish while above the support at 15000. Nikkei lacks momentum to rise above 27500 but has scope to target further upside while above the support at 27200. Shanghai is coming off sharply from a high of 3310 but has immediate support at the current level. Nifty downside could be limited to 17500-17400.
Commodities remains ranged. Brent and WTI may remain sideways within $90-85 and $82.50-77.50 respectively. Gold, Silver and Copper may continue to trade sideways while below the resistance at 1950, 24.50 and 4.3 respectively.
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Author
Vikram Murarka
Kshitij Consultancy Services
Vikram has been forecasting, trading and hedging currencies since 1991. Beginning his career as a currency trader in Essar Group, he was managing an FX exposure of $1.2 bln.
