Morning briefing: The US Treasury yields sustain higher

Stronger US GDP & Durable goods supported the strength in Dollar yesterday. The Dollar Index and Euro faces immediate resistance at support at 99 and 1.16 respectively. The EURINR while above 103.50 can remain ranged within 103.50-105.00. EURJPY on a break past 175 can head towards 176-178, else can fall back towards 172. USDJPY has risen past 149 and if sustained can head towards 150-152 as well. USDCNY is headed towards the resistance coming at 7.14/15. Aussie and Pound have slipped below 0.655 and 1.34 and failing to see an immediate rise above these levels can make the outlook bearish in the near term. USDINR turned lower from 88.80 itself and has a scope to fall towards 88.50-88.25 in the coming sessions. Watch out for the US PCE & Personal Income data releases scheduled today.

The US Treasury yields sustain higher. Crucial resistance is ahead. If they manage to breach it, then more rise can be seen. We will have to wait and watch. The US PCE data release today will be important to watch. The German yields continue to hover around their resistance. A strong rise is needed for them to go higher. The 10Yr GoI is inching up and can go up towards the upper end of its range. For now, the sideways range is intact.

Most indices have dipped and and trades in the red today. The Dow saw some profit taking today as expected. Sustained fall below 46500 can take it to 45500 or lower. The Dax is down below 23650 and unless it moves up again, a fall to 23500-23000 cannot be negated. The Nifty has fallen sharply to close below 25000 and could have scope to tets 24800-24600 in the bsar term. Nikkei has also dipped below 45860 and could fall futher towards 45500 or lower if the dip sustains in the coming sessions. Shanghai may continue to trade between 3850-3750 for now.

Brent and WTI are moving higher as expected, with Brent eyeing $70-72 and WTI targeting $66-68. Gold is struggling below $3,800, where a break above is needed to keep the bullish momentum alive towards $3,900-4,000, else it risks a dip to $3,700-3,600. Silver surged to $45.50 but faces resistance near current levels, with chances of a pullback to $44.50-44.00 unless it breaks above for a run towards $46-47. Copper tested $4.9395 before heavy selling dragged it back to $4.7580, with support at $4.70 that could trigger a rebound. Natural Gas is capped by resistance, and unless it breaks higher towards $3.30-3.40, a fall to $3.00-2.90 looks likely.

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