Morning briefing: The US treasury and the German yields sustain higher

Vikram Murarka Kshitij Consultancy Services

The Dollar index has dipped after testing resistance and could dip for the next few sessions while Euro can rise from here. USDJPY has dipped below 158 and is headed towards 157/156 while EURJPY can trade within 181-178 region for the near term. USDINR has mild scope of testing 95.50 while below 96 but looks eventually bullish for a rise towards 96.25/50. Aussie needs to rise above 0.7050 to pick upward momentum while Pound looks bullish above 1.32.

The US Treasury and the German Yields sustain higher. The outlook remains bullish for both. Support is there to limit the downside. So, any dip from here can be short-lived. Both the US Treasury and the German Yields can go further higher from here. The 10Yr GoI has a crucial resistance ahead. Failure to break this resistance can drag it lower going forward. We will have to wait and see.

Dow has bounced above 52000 but remains vulnerable towards 51500-51000. DAX is moving higher and can test 26000 while remaining range-bound. Nifty remains positive above 23000 and can rise towards 23300. Nikkei remains weak below 67000 and can decline towards 65000-64000. Shanghai has broken below 3850 and needs to hold 3800 to avoid further weakness.

Brent and WTI have fallen amid uncertainty over the Strait of Hormuz, but further gains towards $110-$115 and $98-$100 remain possible. Gold has broken below $4300 and can decline towards $4200-$4100. Silver remains weak below $63 and can fall towards $60. Copper can decline towards $6.60-$6.50, while Natural Gas can fall towards $3.00 and lower.

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Author

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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The US treasury and the German yields sustain higher

The Dollar index has dipped after testing resistance and could dip for the next few sessions while Euro can rise from here. USDJPY has dipped below 158 and is headed towards 157/156 while EURJPY can trade within 181-178 region for the near term. USDINR has mild scope of testing 95.50 while below 96 but looks eventually bullish for a rise.

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