Globally, Draghi delivered
yet another dovish policy with no rate action but plenty of hope of future
stimulus. The EUR/USD pair, which had been trading with a bearish bias,
rebounded after policy as markets were ultra-bearish going into the policy.
Technically, EUR/USD pair has strong support near 1.1110 levels and can bought
for target of 1.1220 levels. More-over, US Fed commentary should take
center-stage for coming week.
On Domestic front, 10 Year
bond yields, which made a low of 6.26% in current leg, rebounded sharply to
69.55% after bond markets got spooked as PMO raised concerns over raising
foreign currency bonds. There is two way to look at this development – One Modi
developed cold feet and postponed an opportunity open financial markets, other
Modi 2.0 also listen to critics amends its policies.
