Monday Briefing: From DXY, Gold to Latest FX Headlines; Jan 23, 2023

US Dollar Index Overview

  • DXY starts a new week on a flat note and stabilizes around 102.00 mark.
  • It made intraday high at 102.03 and low at 101.59 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.54 to 101.64 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 down on Monday and slips back below $1,920 mark.
  • The pair made intraday high at $1,935 and Low at $1,917 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,932 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,918 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Japan’s finances are becoming increasingly precarious, Finance Minister Shunichi Suzuki warned, just as markets test whether the central bank can keep interest rates ultra-low, allowing the government to service its debt.
  • The likelihood that the United States is already in recession or will fall into one this year has dropped over the past three months to 56% from a nearly two-thirds possibility, according to a survey on business conditions.
  • Brazil and Argentina aim for greater economic integration, including the development of a common currency, Brazilian President Luiz Inacio Lula da Silva and Argentine leader Alberto Fernandez said in a joint article they penned.
  • A bipartisan group of U.S. lawmakers is preparing a plan to defuse a looming crisis over the nation’s debt ceiling by changing it from a fixed dollar amount to a percentage of national economic output, the group’s top Republican said.
  • Pakistan’s national grid suffered a major breakdown, leaving millions of people without electricity for the second time in three months and highlighting the infrastructural weakness of the heavily indebted nation.
  • Poland’s prime minister said his government would ask Germany for permission to send Leopard tanks to Ukraine, and planned to send them whether or not Berlin agreed.
  • Russian Foreign Minister Sergei Lavrov was in South Africa for talks with one of its most important allies on a continent that is divided over Russia’s invasion of Ukraine.
  • China rang in the Lunar New Year with its people praying for health after three years of stress and financial hardship under the pandemic, as officials reported almost 13,000 new deaths caused by the virus between January 13 and 19.
  • India has blocked the airing of a BBC documentary which questioned Prime Minister Narendra Modi’s leadership during the 2002 Gujarat riots, saying that even sharing of any clips via social media is barred.

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