Anna 
In the intricate dance of global financial markets, the US dollar index maintains its steadfast position above 102 points. On the currency front, the euro is poised for potential gains, potentially reaching 1.10 points or higher, surpassing the 1.0870-1.09 range. EUR/JPY and USD/JPY, however, have encountered resistance at 160 and 146, prompting retracement. Conversely, USD/CNY is on a downward trajectory and may be on course for 7.10/12. The Australian dollar is anticipated to ascend to 0.6750 or beyond, while the British pound eyes a short-term surge to 1.28 or higher. USD/RUB could undergo testing at 89-88 points before an upward movement, while EUR/INR appears set to approach 91.50. Meanwhile, USD/INR is expected to shift from 82.90 to 83.20. Today’s pivotal focus lies on the release of US Consumer Price Index (CPI) data.
U.S. Treasury yields have seen a marginal uptick. The projection for USD/CNY suggests a potential continuation of its ascent before an overall decline resumes, and the upcoming US CPI data holds significance in shaping this trajectory. German bund yields have maintained an anticipated upward movement, with room for further gains before a subsequent reversal. The 10-year German Bund yield aligns with bearish expectations, poised to decrease further. The 5-year German Bund yield hovers near its lower range, with an anticipated downside breakout and a subsequent decline in yields.
On the equity front, the Dow Jones has exhibited lateral movement, and a breakthrough on the upside would target key resistance levels at 38000-38200. Conversely, the German DAX index lacks a robust follow-on advance, raising concerns of a potential breach below the 16600-16500 support levels. The Nikkei, in contrast, continues its upward trajectory, overcoming resistance and setting its sights on the bullish 36,000-point level. The Shanghai Composite Index experiences a gradual descent, vulnerable to breaching near-term support and falling further in the short term.
Commodity markets present a mixed picture, with crude oil prices maintaining a range-bound stance. Gold and silver, however, have dipped below resistance levels of 2060 and 23.50/23.80, respectively, with further losses looming. Copper prices approach immediate resistance, with a potential breakout contingent on remaining above 3.75. In the natural gas arena, an anticipated decline materialized, leaving room for further descent to 2.8-2.75. The release of today’s US CPI data remains a focal point for market observers navigating these diverse financial landscapes.
