Morning briefing: Sell off in tech shares in the US and weaker US employment

The ECB & BOE kept the interest rates unchanged at 2.15% & 3.75% respectively. The DXY can test 98.50 in the near term before eventually coming down. EURUSD is stuck between 1.1850-1.1750 region. EURINR has declined but downside can be limited to 106.00-105.50. EURJPY can remain within the 186-182 range. USDJPY can test 158 while it remains above 156/55. USDCNY can drift toward 6.90-6.85 levels. The Aussie may trade within 0.71-0.69 region. Pound declined as expected. Now, immediate support is seen around 1.345 and while it holds, the pair can attempt to rise back towards 1.36 and higher. USDINR can remain ranged within 90-91 region for now. Watch out for the RBI MPC meeting scheduled today.

The US Treasury yields have come down sharply after the initial jobless claims data release showed a significant increase. The fall is contrary to our expectation. Further dip is possible before a reversal happens. The unemployment data release will be important to watch. The German Yields have dipped and are struggling to rise. There is room to fall more from here. The ECB kept the rates unchanged in its meeting yesterday and it was largely a non-event for the market. The 10Yr GoI has dipped below its support contrary to our expectation. Some more fall is possible before the broader uptrend resumes. The RBI monetary policy meeting outcome today will need a close watch.

Sell off in tech shares in the US and weaker US employment data has led to decline in most major indices across the globe. The Dow, Dax, Nifty, Nikkei and Shanghai are all headed towards near term supports at 48000, 24400, 25600, 53000 and 4000 respectively. The supports need to hold for the indices to bounce back in the medium term. Else the indices could be vulnerable to decline further. Watch price action near the mentioned supports.

Brent and WTI are under pressure and can stay range-bound between $70-$65 and $66-$61 respectively. Gold and Silver remain weak with further downside towards $4700-$4600 and $65-$60. Copper can extend its decline towards $5.50-$5.40. Natural Gas is holding firm and can rise further towards $3.55-$3.60 in the near term.