15 Apr 24. 0842 IST or 0312 GMT or 2312 EST
Good Morning!
The US Dollar continues to trade higher but could pause near 106.20 while the Euro is headed towards 1.06 from where a short bounce can be possible. EURJPY could trade within the 165-162 region while USDJPY could face interim resistance at 154. Aussie and Pound continue to hold above supports at 0.6450/64 and 1.24 and can move up slowly in the coming days. USDCNY may rise towards 7.24 from where an interim dip is possible. EURINR could range between 88-89.50 for a few sessions. We watch price action near 83.50 on USDINR to see if it breaks on the upside or dips back towards 83.30/20, keeping a near-term range of 83.20-83.50 intact.
The US Treasury yields have dipped slightly. They have to get a strong follow-through rise from here to move higher. Else the yields can fall back. The German yields have declined sharply from the upper end of their respective range. The sideways range remains intact, and the yields might fall within it now. The 10Yr and 5Yr GoI surged on Friday. The outlook is now bullish. More rise is on the cards.
Dow Jones, DAX and Nikkei looks bearish for the near term. Nifty might break below its support of 22500 taking cues from sell off in global equities. Shanghai to trade sideways within 3000-3100 for a while.
Strong US CPI data, Hawkish FED comments on Friday that they were in no hurry to cut interest rate and Middle East tensions have led to volatility in commodity market. Brent can rise while it remains above the support at $89.50. WTI looks ranged. Gold, Silver and Copper rose sharply on Friday before falling back. Metals might fall further in the near term. Natural Gas is to trade sideways within a range of 1.5/1.7-2.00.
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