Morning Briefing: EUR/USD can remain within 1.05-1.07 region for the near term

Dollar Index can trade within 103-105 while Euro can remain within 1.05-1.07 region for the near term. EURJPY and USDJPY have bounced a bit and can test 142 and 136 respectively while Aussie and Pound may rise while above 0.66 and 1.20. USDCNY looks ranged within the broad 6.94-7.00 while USDRUB has bounced a bit and may re-attempt to test 72-74 while above 66/64. USDINR has scope to test 83 before falling from there. Watch price action near the upper end of the 82.50/60-82.80/83.00 range. EURINR looks ranged within 87-88.25

The US Treasury yields have risen back across tenors thereby keeping our bullish view intact to see more rise from here. The US PCE data release today will need a close watch to see its impact on the yields. The German yields continue to move up in line with our expectation. The yields have room to move up further from here. The 10Yr and 5Yr GoI have risen back but need to see if they can get a strong follow-through rise and move up further and avoid a fall.

Dow is likely to trade within 32500-33500 region for some time. DAX has declined sharply giving back all the gains made on Wednesday. Nikkei and Nifty downside could be limited to 26000 and 18000 respectively. Shanghai has declined below the support at 3075-3065 and while below it there is scope to come down further in the coming sessions.

Brent has fallen back but needs to sustain above $80 to move up to its crucial resistance in the coming sessions. WTI tested $80 as expected and has fallen back from there. Precious metals have fallen sharply after the release of upbeat US GDP data. The Q3 US GDP comes at 3.2% against a market expectation of 2.9%. Next focus will be the US Core PCE data which is due today. Kshitij is expecting PCE to come at 5.44 % against a market expectations of 4.96%. Gold may continue to trade within 1780-1840 range for some time. Silver has declined but overall outlook may remain bullish to see a rise towards the key resistance while above 23.25 and 22.70. Copper has fallen back but the key support at 3.76 and 3.70 are likely to limit the downside.

Visit KSHITIJ official site to download the full analysis