ECB today is expected to hike rates by 50bps despite SVB collapse and subsequent fallout seen yesterday. Increased volatility can be seen in the market for the rest of the week. Also watch EU CPI data release due today. Dollar Index and Euro could see fluctuation within 103-105/106 and 1.05-1.0750 region for now. EURJPY can trade within 146-139 while Dollar Yen can hold within 135-132 region. Pound has not been able to remain above 1.22 and has fallen from there; a fall to 1.20/18 cannot be negated in the near term. Aussie has declined and can trade within 0.6550-0.6750 while USDCNY and USDRUB have risen with upside targets of 6.95/96 and 77.20.EURINR is bearish below 89 while USDINR can test 82.85-83.00 on the upside.
The US Treasury yields have tumbled below their key supports and are likely to fall more. The German Yields have declined sharply again failing to get a follow-through rise. The yields have room to fall further. The 10Yr and 5Yr GoI can also fall further from current levels to test their key supports.
Dow is bearish while below 32000. DAX has to hold above the support at 14650 to avoid the danger of falling deeper in the coming sessions. Nikkei has fallen below the support at 27000 and is likely to come down further in the near term. Shanghai may continue to consolidating in narrow range while above the support at 3225. Nifty has declined towards the key support at 16900. We need to see if that holds or not.
Brent and WTI has fallen below their key supports at $75 and $70 and has scope to come down further in the near term. Gold upside may capped at 1950. Silver view is mixed and may trade sideways for some time. Copper has broken below the lower end of the 4.1-3.9 range and can now fall towards its next key support.