Ella 
The USD Index and EUR may test 105.50 and 1.0650, from which a short-term reversal may occur. AUD and GBP are likely to hold steady and reverse from resistance near 0.6450 and 1.2350 respectively. EUR/JPY has broken through 158 and if it can hold above 158.70, it could move towards 159-160. Support for USD/JPY is at 148 and if it holds, a rise to 150 is possible. USD/RUB is likely to trade between 95-102.50. EUR/INR could fall to 88 or lower while moving below immediate resistance at 88.50. USD/CHF would need to break above either side of the 83.30-83.00 area to clear further direction. Data-wise, U.S. CPI will be an important watch tonight.
U.S. Treasury yields fell further and are currently in a corrective decline phase. There is room for yields to fall further. The US CPI data released today will be very important to watch. Weak inflation data will drag yields further lower. German yields are also falling, in line with our expectations, and could fall even more. The 10-year and 5-year German Bund yields are likely to continue falling in the coming sessions.
The Dow has been hovering between 33,600 and 33,900 over the past few days. The U.S. Dollar Index continues to rise and is expected to test 15650-15700 in the short term. The Nifty and Nikkei 225 remain bullish in the near term. The Shanghai Composite Index continues to be mixed.
Crude oil prices fell sharply, indicating a bearish outlook. Gold and silver will test key resistance levels as expected. The outcome of today’s US CPI data will determine whether gold and silver break through resistance levels. Copper and natural gas are likely to trade sideways for some time in the 3.70-3.55 and 3.2-3.5 ranges respectively.
