FOREX MARKET NEWS
As per market news the expectations of higher rates coming on the back of increasing inflation and growth continues to push Dollar higher and nothing more than occasion pause can be hoped for now.
The Dollar Index (99.95) is almost there at the 100 target and a break above that would initiate sharp bulls for the coming sessions. We would prefer for a correction from current levels but the rising momentum may go against our preference. Need to keep a close watch on this. We look for price action near 100.00/50.
Dollar-Yen (109.11) is shooting up sharply. The break of immediate resistance at 17800 on Nikkei could prove near term bullishness for both Dollar-Yen and Nikkei. But there could be some cues coming from the US-Japan yield spread (SEE INTEREST RATES BELOW), which could suggest a small correction may be coming up in a few sessions. Immediate resistance is visible near 110.5 and 111.45 respectively.
The Pound (1.2472) is trapped in the 1.27-1.2350 region. Strong bear pressure is visible at higher levels but is unable to push prices below 1.2350 for now. We could expect the 1.2350 level to hold for some more time.
Euro (1.0752) has shown initial signs of recovery but needs to move up and sustain above 1.0750-1.0800 levels to move back towards 1.09. For now, if a recovery is seen it may extend to 1.09 on the upside followed by another downleg.
The Aussie (0.7560) has paused near current levels and is almost stable. Immediate support is visible near 0.75 and while that holds, the range of 0.75-0.7575 may remain intact. Below 0.75, it could test 0.7489.
COMMODITIES MARKET NEWS
Commodities are recovering the post election moves and could continue to do so this week. Near term looks bullish for Crude and precious metals while Copper may remain stable if not see a sharp fall just now.
Gold (1232.51) bounced back from support near 1210 in line with our expectation and could now possibly move up towards 1240-1260 in the near term while the current support holds.
Silver (17.21) also has also bounced from our exact mentioned support at 16.60 and could move up towards 17.50-17.75 in the coming sessions.
Copper (2.4895) has been coming off sharply after the crazy melt-up seen last week. It has now come to test the lower limit of our mentioned 2.60-2.40 levels and in case it moves below 2.40, it may test the resistance turned support near 2.35.
Brent (46.73) and WTI (45.49) have bounced back sharply as supports near 43.44 and 42.75 have held well. We could see a rise towards 48-49 and 47 respectively in the near term followed by a short dip.