Friday Briefing: From DXY, Gold to Latest FX Headlines; Feb 03, 2023

US Dollar Index Overview

  • DXY strengthens as U.S. NFP job data matches with the expectations and pair remains well supported above 102.50 mark.
  • It made intraday high at 102.75 and low at 101.50 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 102.58 to 101.92 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

  • Gold weakens drastically on robust U.S. NFP job data and slips back below $1,890 mark.
  • The pair made intraday high at $1,918 and Low at $1,875 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,894 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,871 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Releases NFP job data at 517K vs 260K previous release (expected 193K).
  • U.S. unemployment rate came at 3.4 pct vs 3.5 pct previous release.
  • U.S. ISM Services PMI stands at 55.2 vs 49.6 pct previous release.
  • A Chinese spy balloon has been flying over the United States for a couple of days, U.S. officials said, in what would be a brazen act just days ahead of a planned trip to Beijing by Secretary of State Antony Blinken.
  • House of Representatives Republicans ousted Democrat Ilhan Omar from a high-profile committee over remarks widely condemned as antisemitic, two years after Democrats removed two Republicans from committee assignments. The House voted 218-211 along party lines to remove Omar from the Foreign Affairs Committee with Republicans citing the 2019 remarks for which she later apologized.
  • Air raid alerts sounded across Ukraine as European Union leaders were in the country’s capital to discuss further sanctions on Russia and Ukraine’s prospects of joining the European bloc with President Volodymyr Zelenskiy.
  • Under pressure from Afghanistan’s Taliban administration, the United Nations is delivering some food aid using men only, prompting warnings from donors and humanitarian groups that it could be seen as giving in to an internationally condemned ban on most female aid workers.
  • Both houses of India’s parliament were adjourned amid chaotic scenes as some lawmakers demanded an inquiry following the meltdown of shares in billionaire Gautam Adani’s group companies, which some fear could spark wider financial turmoil.
  • Business activity in the euro zone bounced back to growth in January, according to a survey which suggested the bloc’s economy might again escape a contraction this quarter and that the upturn may accelerate.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
Good Luck