Monday Briefing: From DXY, Gold to Latest FX Headlines; Feb 27, 2023

US Dollar Index Overview

  • DXY starts a new week on a lower note and stabilizes below 105.00 mark.
  • It made intraday high at 105.35 and low at 104.75 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 104.71 to 105.37 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 during U.S. session as U.S. released key economic data with mixed numbers.
  • The pair made intraday high at $1,818 and Low at $1,807 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,822 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,808 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Durable Goods Orders stands at -4.5 pct vs 5.1 pct previous release.
  • U.S. Core Durable Goods orders stands at 0.7 pct vs -0.2 pct previous release.
  • U.S. Pending Home Sales stands at 8.1 pct vs 2.5 pct previous release.
  • China has urged peace after a U.S. warning of serious consequences if it provided arms to support Russia’s invasion of Ukraine. Washington and its NATO allies are scrambling to dissuade China from providing military aid for Moscow’s war.
  • Huge crowds gathered in Mexico City to condemn government moves to shrink the electoral authority as a threat to democracy, in what appeared to be the largest protest so far against President Andres Manuel Lopez Obrador’s administration.
  • Nigeria was to resume announcing presidential election results on Monday amid complaints of irregularities as opposition parties criticized the slow pace at which the results were being uploaded on to the election commission’s website.
  • British Prime Minister Rishi Sunak is expected to announce a new deal on post-Brexit trade rules for Northern Ireland, gambling that the reward of better terms with the European Union is worth the discord it might cause within his own party. Ursula von der Leyen will travel to England for final talks.
  • French President Emmanuel Macron will fly to Africa this week in a bid to counter Russian efforts to dislodge France from the continent, after Paris suffered a series of military and political setbacks in its former sphere of influence.
  • House Republicans are eyeing $150 billion in spending cuts that reflect a hardline drive to target education, healthcare and housing – particularly efforts to address racial inequities that conservatives deride as “woke” – as they push forward in talks on the federal debt ceiling.
  • Medical tourism has taken a knock in places like Hungary and Turkey as a result of inflation and rising energy and food prices. Rising air fares and fewer flights – and the memory of last summer’s travel chaos – are also putting off would-be patients.

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