Friday Briefing: From DXY, Gold to Latest FX Headlines; March 10, 2023

US Dollar Index Overview

  • DXY spikes down after U.S. NFP job results and slips back below 104.50 mark.
  • It made intraday high at 105.30 and low at 104.32 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 105.35 to 104.37 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 strengthens extremely on mixed U.S. NFP job results and touches $1,858 mark.
  • The pair made intraday high at $1,858 and Low at $1,827 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,862 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,852 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. NFP Employment Change stands at 311K vs 504K previous release (Expected 224K).
  • U.S. Unemployment rate stands at 3.6 pct vs 3.4 pct previous release (Expected 3.4 pct).
  • European bank shares tumbled in the wake of a dramatic sell-off in U.S. bank stocks amid spreading jitters about the sector’s vulnerability to the rising cost of money. The global rout was prompted by Silicon Valley Bank, a major banking partner for the U.S. tech sector, being forced to raise fresh capital.
  • An explosion in trading in a type of equity derivative security in recent months has prompted Wall Street players and a major clearing house to examine the potential risks it poses. So-called zero day to expiry options offer retail and institutional traders a relatively cheap, though high-risk, way to bet on intra-day swings in stock prices.
  • U.S. job growth likely slowed to a still-solid pace in February, with the unemployment rate expected to hold at a more than five- decade low, which could see the Federal Reserve raising interest rates for longer and to a higher level to tame inflation.
  • Ukraine has decided to fight on in the ruined city of Bakhmut because the battle there is pinning down Russia’s best units and degrading them ahead of a planned Ukrainian spring counter-offensive, an aide to President Volodymyr Zelenskiy said.
  • Xi Jinping secured a precedent-breaking third term as president of China during a parliamentary session in which he tightened his control of the world’s second-largest economy as it emerges from a COVID slump and diplomatic challenges mount.
  • President Joe Biden unveiled plans for government spending and higher taxes on the wealthy, choosing the swing state of Pennsylvania to reveal his playbook for an expected 2024 re-election bid.

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