The U. S. continued its streak of better-than-expected housing numbers, raising the hopes of a turnaround in the housing industry in the U. S. New home sales jumped by 11 percent in the month of June, compared with a fall of 0.6 percent in the previous month.

Building permits also witnessed an increase of 10 percent in June. Investors found comfort in these developments and shifted to riskier and higher yielding assets from the dollar and treasuries. Following this, dollar continued its slide against the basket of currencies. The fall in dollar provided further support to the buying spree in commodities.

Today we will see the monetary policy review report by Reserve Bank of India. It is very unlikely that the central bank will temper with any of the key rates. Repo rate and Reserve Repo rate are expected to remain steady.

Retail sales number from Japan may decline at a lower rate against the previous month's fall and thereby provide support to Yen against the dollar. Any significant improvement in U. S consumer confidence may trigger some fresh buying in asset classes like equities and commodities.