The Dollar Index has climbed above 102, pushing the Euro lower as markets brace for key policy meetings from the Federal Reserve and the European Central Bank later this week. The Dollar-Yen pair is showing strength, with bullish momentum targeting 158, while the Euro-Yen could rise to 177. Meanwhile, the Euro-Indian Rupee is expected to trade within a narrow range of 107 to 105.80 in the near term.
Other currency pairs are also in focus. The British Pound is anticipated to test 1.33 before potentially bouncing back, while the Australian Dollar remains stable. The USDCNY is looking weak, heading towards 6.65, and the USDINR could rise to 95.50 this week, though its ability to break past this level remains uncertain.
In the bond markets, US Treasury Yields are holding steady but need a strong follow-through to push higher. German Yields have inched up but face resistance that could drag them lower again. The 10-Year Government of India bond is moving up but is approaching a key resistance zone that could trigger a corrective fall.
Equity markets are mixed. The Dow needs to hold above 52,000 to extend its rise towards 53,000 or higher, otherwise, it could fall towards 51,000. The DAX has potential to rise towards 25,600-25,800 if it stays above 25,000. The Nifty requires sustained support above 22,600 to advance towards 23,000, or it may drop towards 22,350-22,250. The Nikkei needs a break above 64,000 to aim for 65,000 or higher, while the Shanghai Composite remains weak below 3,700 and could fall further towards 3,600-3,500.
Commodities are showing varied movements. Brent and WTI crude oil prices are declining, with further downside expected towards $114-112 and $100-98, respectively. Gold has bounced above $4,000 but remains vulnerable to a break below this level, which could drag prices towards $3,900-3,800. Silver is also weak and could fall towards $52-50. Copper, however, has risen as expected and could extend gains towards $6.65-6.70 in the coming sessions.