Morning Briefing: Dollar Index is bullish above 109.30/40

Dollar Index is bullish above 109.30/40 which if seen can open doors for a further upmove towards 110-112.50 while Euro can fall towards 0.98/97 on a break below 0.99. USDJPY and EURJPY have risen well too and can be headed towards 139/140 on both pairs. Pound and Aussie look bearish towards 1.16/14 and 0.67 if they continue to fall from current levels. USDCNY has been rallying and is bullish towards 6.95 while USDRUB remains ranged within 61-58 region. USDINR can be bullish if it manages to break above 80 while EURINR can be ranged within 80.50-79 for now.

The US Treasury yields have risen well on Friday after Powell said that the Fed will continue to raise rates in order to bring down the inflation. The overall view is positive for the yields and there is room to see further rise from here. The German yields continue to rise and are keeping intact our bullish view. The 10Yr and 5Yr GoI have declined sharply on Friday and can fall further.

Most equities are trading in red. Dow and Dax looks bearish for a test of 31300 and 12500-12400 respectively. Nikkei can fall towards 27500-27000 in the near term. Shanghai could remain in a range while above 3200. Nifty may remain week while below the resistance at 17750.

Crude prices have rebounded from last Friday’s fall while precious metals decline on Dollar strength. While the bounce sustains in crude, Brent and WTI could target 102.5 and 95 respectively. Need to see if crude prices able to break these levels or not on the upside. Precious metals have fallen sharply: Gold and Silver look bearish for a fall towards 1710-1700 and 18.00 respectively. Copper can fall towards 3.5 on a break below 3.6.

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