The Dollar Index looks stable above the support of 106.75 for now but the upside is likely to be capped at 108. A break below 106.75 can strike in further bearishness. Euro needs to see a break past 1.0530/50 to head towards 1.0600 in the coming sessions.
needs to see a decisive break on either side of the range of 88-90 for further directional clarity. Aussie is coming off as expected and can soon test 0.63 before bottoming out. The Pound is trading higher within its range of 1.25-1.28. continues to rise further and remains bullish towards 7.30-7.35 while above 7.28/25.
and EURJPY seem to be holding well below 155 and 163 and the view remains bearish towards 152 and 160 or lower respectively in the near term. tested 84.90 yesterday. If it fails to see an immediate dip in the onshore markets below 84.90, then it could be vulnerable to head towards 84.95-85.00 soon. Watch out for US Housing starts, US Current Account balance and the FOMC meeting scheduled today. The German and the US Treasury yields continue to remain stable. Market is waiting for the US Federal Reserve meeting outcome tonight. A 25-bps rate cut is already factored in the market.