Friday Briefing: From DXY, Gold to Latest FX Headlines; March 24, 2023

US Dollar Index Overview

  • DXY moves in rigid boundaries and remains well supported above 103.00 mark.
  • It made intraday high at 103.35 and low at 102.51 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 103.48 to 102.72 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 enjoys roller coaster movement and consolidates around $1,992 mark.
  • The pair made intraday high at $2,003 and Low at $1,981 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,999 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,984 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Flash Manufacturing PMI stands at 49.3 vs 47.3 previous release.
  • U.S. Flash Service PMI stands at 53.8 vs 50.6 previous release.
  • At an unassuming industrial estate in northern Ukraine, two former Microsoft executives and a team of engineers are producing military drones that can travel over long distances and carry large payloads.
  • King Charles’ state visit to France has been delayed after trade unions called for another day of nationwide strikes and street protests during his stay, the French presidency said.
  • India’s parliament disqualified the leader of the opposition Congress party, Rahul Gandhi, a day after a magistrate’s court jailed him for two years in a defamation case linked to Prime Minister Narendra Modi’s surname.
  • The US military carried out multiple air strikes in Syria against Iran-aligned groups that it blamed for a drone attack that killed an American contractor, wounded another and also hurt five US troops, the Pentagon said.
  • North Korea has tested a new nuclear-capable underwater attack drone, state media reported, as leader Kim Jong Un warned joint military drills by South Korea and the US should stop.
  • Banking stocks fell sharply in Europe with heavyweights Deutsche Bank and UBS Group hit hard by worries that the worst problems in the sector since the 2008 financial crisis were not yet contained.
  • Business activity across the euro zone unexpectedly accelerated this month as consumers splashed out on services, but weakening demand for manufactured goods deepened the downturn in the factory sector, a survey showed.
  • Indian industrial giant Reliance is reviving a historic local cola brand with plans to use its vast retail network, slash prices and tap nationalist sentiment to challenge US beverage giants PepsiCo and Coca-Cola in a key market.
  • Brazilian President Luiz Inacio Lula da Silva heads to China this weekend for a five-day visit to refresh relations with his country’s largest export market and seek new Chinese investment in the Latin American country.
  • Taiwan President Tsai Ing-wen will make sensitive stopovers in the United States on her way to and from Central America that China’s foreign ministry condemned.

Source: Reuters

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

Take a look and do trade wisely!
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