Ella 
The USD Index is likely to hold above 104 with a target of 105, while medium-term resistance for EURUSD lies at 1.0870/80, below which a test of 1.08 could soon follow. USD/CNY, USD/JPY and EUR/JPY have recovered well from the lows of 7.2193, 151.93 and 164.83, with the near-term outlook bullish as their respective support levels hold. AUD and GBP would have to rise above 0.66 and 1.29 respectively to avoid a downside move towards 0.6500-0.6400 and 1.28. USD/INR remains stable above 83.65 and is bullish towards 83.90 in the coming weeks, while EUR/CHF needs to move above 91 to turn bullish. This week’s FOMC policy meeting is scheduled for July 31, 2024, and it will be critical to pay attention to it.
U.S. Treasury yields fell sharply on Friday following the release of U.S. PCE data. Annual PCE growth in July was 2.51%, down from 2.6% in June. Treasury yields are likely to fall further this week. Wednesday’s Fed meeting will need to be watched closely. German bond yields are near a key support level that must be held to maintain the upward trend. We must wait and see what happens. The 10-year and 5-year GoI have rebounded from Friday’s lows. But the general trend remains downward and any rise will be limited.
The Dow Jones Industrial Average has surged back above 40,500. This reduces the danger of a downside move, which could lead to further gains above 40,000 levels. The DAX could rise to 18,600-18,800 points. Nifty surged higher to cross 24,500 points and is likely to test key resistance levels going forward. The Nikkei rebounded sharply but may face resistance at 39,000-39,500 points. The Shanghai Composite Index remains sluggish and is bearish to 2850-2800 points in the short term.
Crude oil prices have retreated sharply and could test key near-term support before rebounding. Gold, silver, and copper are seeing further gains, but there is resistance above that needs to be overcome to reinforce the bullish call, or a pullback is possible. Natural Gas holds above 2.0, above which the broader market remains bullish.
