The Dollar index gained strength, and Euro came down after the weaker business activity reports in the euro zone economy. The index needs to see a rise past 101 to turn bullish towards 102 in the coming sessions, while Euro can trade within 1.1070-1.12. USDJPY and EURJPY are coming off contrary to our view of seeing a rise towards 145/146 and 162 respectively in the near term. BOJ Governor’s speech today would be important to watch for further directional clarity in both pairs. Aussie needs to see a rise past 0.6850, or else may fall back towards 0.67/66. RBA meeting is scheduled today wherein the Central Bank is likely to keep the interest rates unchanged. The pound could remain ranged between 1.31-1.33/34. USDCNY rose a bit after Governor Pan Gongsheng, at a news conference said the central bank will cut the reserve requirement ratios (RRR) by 50bps. It needs to sustain above the current levels and rise higher to negate a fall to 7.0250 or lower in the coming sessions. EURINR could trade within 94-92 region for a few sessions. USDINR is holding well above the interim support at 83.40 and while it holds, it can bounce back higher towards 83.60/80 in the coming sessions. Watch out for the US Case Schiller and US Consumer Confidence data release scheduled today.
The US Treasury yields have inched up. But resistances ahead can cap the upside and keep the broader downtrend intact. We expect the yields to fall back after testing the resistance. The German yields have come down indicating that the downtrend could have resumed. There is room to fall more from here. Any intermediate rise will be short-lived. The 10Yr GoI is inching up. The yield can consolidate in a narrow range before falling further. The broader trend is down.
Dow Jones sustains higher and could remain bullish to target further upside while above the support at 41750. DAX has recovered as the support at 18600 seems to be holding well and while above it, we could expect the recovery to extend further. Nifty and Shanghai continues to move up and can target 26000-26200 and 2800 before a corrective fall might be seen from there. Nikkei has broken above its resistance at 38000 and looks like to move up further from here.
Brent and WTI have fallen back a bit but chances of seeing a rise to their key resistance cannot be ruled out. Gold has scope to rise towards 2670-2700. Silver looks ranged between 30-32. Copper has bounced back well and has potential to rise towards 4.5 or higher. Natural Gas can test 2.9-3.0 before a fall back can be seen from there.
Visit KSHITIJ official site to download the full analysis
The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.
Recommended Content
Editors’ Picks

EUR/USD tests daily lows near 1.0350 on NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in January, dragging EUR/USD to the area of new lows near 1.0350.

GBP/USD flirts with daily lows near 1.2420, Dollar picks up pace
The continuation of the rebound in the US Dollar motivates GBP/USD to accelerates its losses and revisit the 1.2420 area, or daily lows, following the release of US NFP in January.

Gold tests fresh lows near $2,860 after NFP
Gold prices trim their early advance on Friday, deflating to the vicinity of the $2,860 region per ounce troy following the publication of the US labour market report in January.

Key takeaways from the January Payrolls report
The January payrolls number was weaker than expected at 143k, vs a reading of 175k. However, to counteract the downside surprise in the NFP number, the unemployment rate fell to 4% from 4.1%, and average wage data jumped by 0.5% on the month, to 4.1%, the market had been looking for a decline to 3.8%.

Top Trumps: The global economy’s House of Cards
The year has barely started and we are learning the hard way what Donald Trump’s second term in office means for markets, analysts and global policymakers. It's like living through an episode of the political thriller, House of Cards.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.