25 Oct 22. 0855 IST or 0325 GMT or 2325 EST
Good Morning!
Currencies have been trading within very broad range impacted from the geopolitical tensions globally. Dollar Index holds below 114 but needs to break further below 110 to be strongly bearish. Euro has come up to test 0.99 which can push it lower else the expected fall can come on after testing parity. EURJPY and USDJPY look bearish while below 149 and 152/150. Pound can range within 1.09-1.15 while Aussie looks bearish below 0.64/65. USDCNY has broken above 7.30 and is now headed towards 7.36 if the rise sustains. USDRUB can be ranged within 62.50-60.50. EURINR needs to break above 82 to head higher else can remain within 82-79.50 region for sometime.
The US Treasury yields are managing to hold higher. The view remains bullish, and the yields have room to see more rise from here. The German yields are also retaining their bullishness and can rise further. The 10Yr and 5Yr GoI have to break above their immediate resistances to gain momentum and rise from here.
Dow and DAX look bullish to see a further rise in the coming sessions. Nikkei could see a test of 27800 while above the support 26800. Shanghai has fallen as expected, but has immediate support near 2950-2940 which, if hold can produce a bounce back. Nifty is bullish while above 17600.
Brent and WTI continues to hold below the resistance at $95 (Brent) and $87.5 (WTI). Gold has bounced back from 1620 level and could rise towards 1700 in the near term if the bounce sustains. Silver has risen above 19 and could target 20.20-20.50 on the upside if the rise sustains. Copper continues to trade within a range of 3.5-3.3.
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