Monday Briefing: From DXY, Gold To Latest FX Headlines; Jan 09, 2023

US Dollar Index Overview

  • DXY falls sharply after the mixed U.S. NFP job results and slips back below 105.00 mark.
  • It made intraday high at 105.63 and low at 104.93 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 105.57 to 104.91 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 exhibits range bound movement as no key fundamentals are scheduled from the U.S. itself.
  • The pair made intraday high at $1,881 and Low at $1,868 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,882 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,867 on H1 chart will test further supports.
Supports
Resistances
$1,867
$1,882
$1,862
$1,889
$1,857
$1,894
$1,851
$1,901
$1,847
$1,908
$1,842
$1,914

 

Key Headlines for the FX market:

  • Ukraine is strengthening its forces in the eastern Donbas region and repelling constant attacks on Bakhmut and other towns there by Russian mercenary group Wagner, Ukrainian authorities said.
  • People joined long queues outside immigration offices in Beijing, eager to renew their passports after China dropped COVID border controls that had largely prevented its 1.4 billion residents from traveling for three years.
  • Thailand rescinded a policy announced at the weekend requiring visitors to show proof of COVID vaccination, citing sufficient immunisation levels in China and globally.
  • President Joe Biden visited the U.S.-Mexico border for the first time since taking office, tackling one of the most politically charged issues in the country.
  • Accompanied by Border Patrol agents, Biden toured a section of the wall that divides the two countries, a signature priority of his predecessor Donald Trump.
  • California braced for more severe weather after a week of torrential downpours and damaging winds killed at least 12 people in the past 10 days and knocked out power for hundreds of thousands of homes and businesses.
  • Romania’s economy is set to outpace its stagnating neighbors this year, helped by European Union funding, currency stability and foreign investment driven in part by reshoring from Russia and Ukraine.
  • The IMF expects a 3.1% expansion, while even the European Commission’s 1.8% growth forecast would place it well ahead of Poland.
  • Britain has become less competitive and less attractive to foreign investors as a result of soaring energy costs and recent political turmoil, manufacturers said in an industry survey.
  • Goldman Sachs will start cutting thousands of jobs across the firm from Wednesday, sources familiar with the move said, as it prepares for a tough economic environment in the year ahead.
  • The Swiss National Bank posted an annual loss of $143 billion in 2022, the biggest in its 115-year history as falling stock and fixed-income markets hit the value of its share and bond portfolio.
  • Indonesia and Malaysia, the world’s biggest producers of palm oil, agreed to work together to fight “discrimination” against the commodity after a meeting between leaders from the countries.

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