Most currency pairs continue to trade in a sideways range. The Fed Chairman would be addressing the Jackson Hole today, which could lead to some volatility in tonight’s US session. The Dollar Index is trading above 108 while the Euro is holding between 0.99 and 1.01 for now. The Aussie and the Pound can range between 0.6850-0.70 and 1.17-1.19 respectively while the EURJPY has support at 135 and may rise to 138 initially before falling towards the mentioned support. Dollar Yen may test 138 before falling to 135. USDCNY is bullish above 6.85 while USDRUB is also trading between 61 and 58. USDINR is bullish towards 80.0-80.20 then that it is above 79.60.
US Treasury yields have fallen but are enjoying support that may keep the current rise intact. The market is awaiting news from US Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium today. Whether the outcome of his speech can give momentum to the current rally in yields or not will have to be seen. German yields remain bullish and may rise further from here. The 10-year and 5-year GoIs are trading below their main resistances and may decline in the short term if they fail to break through their resistances.
The Dow has rebounded but needs a strong break above 33300 to see an extended upside move. Dax has risen again but needs to break above resistance at 13350 to go higher otherwise a drop looks likely. The Nikkei has room to rise further on the upside as long as it is above 28500. Shanghai moved higher while support at 3200 holds. Nifty may remain capped at 17750.
Brent came out of resistance at 102.5. WTI was unable to make a sustained rise past 95 and retreated. Gold needs to break above 1775-1780 to see further upside. Silver is gradually rising towards 19.5. Copper broke above 3.7 and although the upside holds, further upside could be seen in the coming sessions.
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