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Morning briefing: EUR/USD could trade between 1.1700-1.1600

Most currency pairs are stable today. Dollar Index and Euro could trade between 98.50-99.50 and 1.17-16 respectively while USDJPY and EURJPY can slowly rise towards 157-158 and 182-183 respectively after the intervention by the BOJ last week. EURINR can test 109 before reversing higher while USDCNY needs to break below 6.71 to test support at 6.70 in the medium term. Aussie could rise towards 0.7250-0.73 while the Pound could trade between 1.3475 and 1.3550 respectively. USDINR needs to break below 94.45 to trigger a possible test of lower support near 94 else, a bounce back from current levels if seen can negate bearishness in the near term. Overall a stable range below 95 can be seen for at least a week.

The US Treasury Yields sustain higher. A decisive break and a strong follow-through rise above their resistance can take them higher. Any dip from here can be short-lived as supports are there to limit the downside. The German yields remain higher and stable. The outlook remains bullish to see more rise. The 10Yr GoI is hovering around a support. A narrow range bound move is a possibility in the near term. But the bias remains positive to see more rise from here.

Dow remains range-bound between 52500-54000 while below 54000. DAX has bounced back and can rise towards 26500. Nifty remains vulnerable below 24000, with a break below 23800 opening the way towards 23600-23500. Nikkei has turned stronger above 66000 amid easing US rate hike expectations and can rise towards 67000-68000. Shanghai is likely to remain within the 3850-4000 range while below 4000.

Brent and WTI remain positive and can rise towards $100 and $95 respectively in the near term. Gold needs to sustain above $4300 to keep the possibility of a rise towards $4600 alive. Silver needs a sustained break above $70 for a move towards $75-$80. Copper is likely to remain range-bound between $6.50-$6.80, while Natural Gas needs to break above $3.00 for a rise towards $3.25-$3.50.


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Author

Vikram Murarka

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.

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