Ella 
Federal Reserve Chairman Jerome Powell commented yesterday that the central bank may not be too long away from cutting interest rates, which pushed the U.S. dollar index down, but the market rebounded overnight. The U.S. dollar index may rebound higher above 104, while the euro may fluctuate within the early 1.09-1.07 range. USD/JPY and EUR/JPY remain above their respective support levels of 157-156 and 171/170.50, with a possible recovery in the coming sessions. USD/CNY is above 7.26 and may rise to 7.28 in the medium term. The AUD and GBP are hovering below the 0.68 and 1.30 resistance levels respectively. USD/INR is likely to continue trading between 83.35-83.65, with an upward bias. EUR/INR has risen above 91, above the support level of 90.80. If it can continue to rise, it can rise further to 91.50-92.
U.S. Treasury yields have rebounded. It will need to be seen whether the rebound is sustainable to avoid further declines from here. German government bond yields fell slightly. The presence of support limits the downside and keeps the broader uptrend intact. The 10-year and 5-year German Bund yields fell in line with our expectations. They have further room to fall.
U.S. Federal Reserve (FED) Chairman Powell commented that U.S. second-quarter CPI data showed more progress and provided policymakers with confidence that inflation is falling toward the Fed’s 2% target. A sustained move above 40,250 is needed for the Dow to strengthen the bullish case and avoid the danger of a corrective decline. The German DAX index has fallen back, but there is still support in the near future. If it can hold the support, it will continue to be optimistic about its rise towards 19000-19200 points. Nifty remains above 24500 points, continuing bullish move towards new highs. The Nikkei 225 index held above 41,000 points and did not rule out the possibility of rising towards its key resistance level. The Shanghai Composite Index lacks a follow-up upward trend, but it still has the potential to rise towards 3,000 points.
