Friday Briefing: From DXY, Gold to Latest FX Headlines; March 17, 2023

US Dollar Index Overview

  • DXY trades flat despite lower than expected U.S. Key economic data and stabilizes above 104.00 mark.
  • It made intraday high at 104.44 and low at 103.89 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 104.55 to 103.92 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 spikes up sharply as U.S. economic results fail to meet the expectations and jumps back above $1,950 mark.
  • The pair made intraday high at $1,954 and Low at $1,918 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,962 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,947 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Industrial Production stands at 0.0 pct vs 0.3 pct previous release.
  • U.S. Prelim UoM Consumer Sentiment stands at 63.4 vs 67.0 previous release.
  • European Central Bank supervisors met to tackle growing cracks in the banking system after a $30 billion lifeline for US lender First Republic Bank eased fears of its imminent collapse.
  • Credit Suisse sees its access to $54 billion of central bank funding as “precautionary liquidity” to allow the embattled lender to continue its revamp, the head of its Swiss business said.
  • British banks are seeing a pick-up in enquiries to switch cash between institutions, as contagion fears prompt some depositors to try to figure out the safest harbors for their funds.
  • FedEx raised its fiscal 2023 profit forecast despite weak market conditions, citing progress on its plan to shave $3.7 billion in costs from its global delivery business, sending its shares up more than 11%.
  • French President Emmanuel Macron faced the gravest challenge to his authority since the so-called Yellow Vest protests after his government’s decision to push through a contested pension overhaul without a vote prompted violent unrest overnight.
  • Chinese President Xi Jinping will visit Russia next week, weighing into the Ukraine conflict just as relations between Moscow and Washington hit a new low.
  • Former Pakistani prime minister Imran Khan plans to ask a court today to halt a police warrant to arrest him for failing to attend a hearing.
  • A Republican proposal to cancel unspent COVID-19 relief money could undercut healthcare for military veterans and pensions for blue-collar workers while doing little to improve the US fiscal picture, a Reuters review of federal spending figures found.

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