Friday Briefing: From DXY, Gold to Latest FX Headlines; Jan 13, 2023

US Dollar Index Overview

  • DXY exhibits range bound movement and stabilizes below 103.00 mark.
  • It made intraday high at 102.65 and low at 101.98 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 103.07 to 102.32 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 continues to trade higher after U.S. CPI data and currently trading above $1,900 mark.
  • The pair made intraday high at $1,909 and Low at $1,892 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,906 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,892 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Russia said that its forces had taken control of the salt-mining town of Soledar in eastern Ukraine after days of relentless fighting, claiming Moscow’s first big battlefield gain after half a year of military setbacks.
  • The peak of China’s COVID-19 wave is expected to last two to three months, and will soon swell over the vast countryside where medical resources are relatively scarce, a top Chinese epidemiologist has said.
  • Thousands took to the streets of Peru’s capital Lima in a peaceful protest against the new government and president, after weeks of bloody clashes triggered by the ousting of former President Pedro Castillo left at least 42 dead.
  • Trump will today learn how the company that bears his name will be punished after being found guilty of scheming to defraud tax authorities for 15 years.
  • Republicans who control the House of Representatives wasted no time this week using their new majority to pass political messaging bills that appeal to conservative voters on hot-button issues, but often involved more hyperbole than substance.
  • World stocks scaled one-month peaks thanks to signs inflation is easing, while the yen jumped to seven-month highs and Japanese bond yields breached a central bank target as investors challenged its commitment to loose monetary policy.
  • German economic output stagnated in the final quarter of 2022 and grew 1.9% over the full year, data showed, adding to signs that Europe’s largest economy may – at least over the winter – dodge a recession. Britain’s economy unexpectedly eked out some modest growth in November after a boost from World Cup drinkers and video game sales.
  • JPMorgan reported a 6% rise in fourth-quarter profit, as a better-than-expected performance from the bank’s traders more than offset a hit from a slump in dealmaking. Bank of America reported a better-than-expected fourth-quarter profit as rate hikes helped it charge more interest on loans to customers.

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