Monday Briefing: From DXY, Gold to Latest FX Headlines; Jan 30, 2023

US Dollar Index Overview

  • DXY trades in narrow range on Monday and stabilizes below 102.00 mark.
  • It made intraday high at 102.04 and low at 101.65 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.15 to 101.54 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 starts a new week on a flat note and consolidates around $1,927 mark.
  • The pair made intraday high at $1,934 and Low at $1,920 mark.
  • A day chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
  • A sustained close above $1,932 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,922 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Russian forces claimed incremental gains in eastern Ukraine adding up to their biggest advances in months, after relentless battles that Kyiv described as human wave attacks which showed Moscow had no regard for the lives of its own men.
  • Flood-ravaged Auckland is forecast to receive further heavy rain in the coming days, authorities in New Zealand’s largest city said, as insurers counted the costs of what looks likely to be the country’s most expensive weather event ever.
  • The World Health Organization said that COVID-19 continues to constitute a public health emergency of international concern, its highest form of alert. The world is “dangerously unprepared” for future pandemics.
  • President Joe Biden and House of Representatives Speaker Kevin McCarthy will meet at the White House on Wednesday for talks in the standoff over the federal debt ceiling and prospect for a U.S. default.
  • The U.S. Treasury Department this week is likely to announce that it will offer fewer Treasury bills in the second quarter, after hitting its statutory borrowing limit.
  • The German economy unexpectedly shrank in the fourth quarter, data showed on Monday, a sign that Europe’s largest economy may be entering a much-predicted recession, though likely a shallower one than originally feared.
  • Venezuela’s state oil firm PDVSA is toughening terms for buyers after a month-long halt to most exports of crude and fuel, demanding prepayment ahead of loadings in either cash, goods or services, company documents showed.
  • U.S. central bankers have unambiguously telegraphed this week’s policy decision: a quarter-of-a-percentage-point increase in their benchmark interest rate, the smallest since they kicked off their tightening cycle 10 months ago with one the same size.

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