Morning briefing: Euro can dip towards 1.1700

The DXY has dipped contrary to our expectations of seeing a rise. It can fall towards 96 on a break below 97. Euro can dip towards 1.17 and keep immediate trade within 1.18-1.17. EURINR could rise to 108 while above 106.70. EURJPY has dipped from 183. 672 and can fall to 183 while below 184. USDJPY has tested 156 before facing decline from there as expected. A fall to 154-153 could be on the cards before pausing for reversal. USDCNY has fallen and while it sustains below 6.90, a dip to 6.85 looks possible. The Aussie and Pound can rise towards 0.71 and 1.36 respectively. USDINR moved up yesterday to close at 90.9550. If it holds below 91, a dip back towards 90.50 can be possible else, a rise to 91.25/50 could come into the picture.

The US Treasury yields remain lower. They can fall more from here in the near-term and then see a bullish reversal. The German Yields also have room to fall further from here to test their support. The price action thereafter will need a close watch. The 10Yr GoI has come down below its intermediate support. A near-term fall is possible before the expected rise happens.

Global equities remain mixed, with the Dow edging higher but still biased lower towards 48,500–48,000 in the near term. DAX has risen slightly but a test of 24,800 looks possible for the near term before a recovery towards 25,400–25,500. Nifty continues to show weakness, and unless it sustains above 25,500, a decline towards 25,000–24,900 remains likely. Nikkei has rebounded contrary to expectations and may trade in a broad 58,000–56,000 range for some time. Shanghai has dipped but retains a positive outlook, with scope to rise towards 4,150–4,175 while holding above 4,050.

Brent is struggling near $71 but retains upside potential towards $74–$76 in the coming sessions. WTI has dipped near $66, yet the near-term view stays positive for a rise towards $68–$70. Gold has corrected slightly but continues to hold a bullish outlook targeting $5,300–$5,400. Silver has also eased but remains biased higher with scope to move towards $90. Copper is moving up as expected and can extend gains towards $6.00–$6.20. Natural Gas continues to weaken and may fall further towards $2.80–$2.60 in the near term.