Friday Briefing: From DXY, Gold to Latest FX Headlines; Jan 27, 2023

US Dollar Index Overview

  • DXY strengthens slightly after U.S. key fundamentals and stabilizes above 102.00 mark.
  • It made intraday high at 102.13 and low at 101.68 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.11 to 101.54 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 remains slightly volatile at U.S. released Personal Income/spending data with flat to negative numbers.
  • The pair made intraday high at $1,935 and Low at $1,919 mark.
  • A day chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
  • A sustained close above $1,932 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,927 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Personal income increased $49.5 billion (0.2 percent) in December, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5).
  • Donald Trump’s stunning victory in New Hampshire’s 2016 Republican primary announced to the other states that he was a serious contender. But as the former president kicks off his bid to recapture the White House in 2024 with a speech in the state tomorrow he will find the political landscape more treacherous than he did six years ago.
  • Russia has stepped up attempts to break through Ukraine’s defenses with heavy fighting in the east of the country, underlining Kyiv’s need of more Western weapons, Ukrainian officials said.
  • Israeli jets struck Gaza in retaliation for two rockets fired by Palestinian militants, further escalating tensions after one of the worst days of violence in the occupied West Bank in years.
  • A security assessment by Indian police in the Himalayan region of Ladakh says there could be more clashes between Indian and Chinese troops along their contested frontier there as Beijing ramps up military infrastructure in the region.
  • A state of emergency was declared in New Zealand’s biggest city Auckland as torrential rains caused widespread flooding and evacuations, closing the city’s airports and forcing organizers to cancel a scheduled concert by Elton John.
  • Shares of India’s Adani Enterprises sank 20% as a scathing report by a U.S. short-seller triggered a rout in the conglomerate’s listed firms, casting doubts on how investors will respond to the company’s record $2.45 billion secondary sale.

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