Monday Briefing: From DXY, Gold to Latest FX Headlines; March 13, 2023

US Dollar Index Overview

  • DXY starts a new week on a lower note and remains well supported below 104.00 mark.
  • It made intraday high at 104.40 and low at 103.59 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 104.31 to 103.62 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 up sharply on Monday and jumps back above$1,900 mark.
  • The pair made intraday high at $1,912 and Low at $1,871 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,917 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,898 on H1 chart will test further supports.

Key Headlines for the FX market:

  • US authorities launched emergency measures to shore up confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a broader financial crisis. Regulators said the failed bank’s customers will have access to all their deposits.
  • HSBC bought the UK arm of Silicon Valley Bank for a symbolic one pound, rescuing a key lender for technology start-ups in Britain, as the biggest bank collapse since the financial crash continued to roil markets.
  • State regulators closed New York-based Signature Bank, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.
  • Goldman Sachs’ analysts said they no longer expect the U.S. Federal Reserve to deliver a rate hike at its March 22 meeting with considerable uncertainty about the path beyond March, in light of the recent stress in the banking sector. Goldman previously expected a 25-basis-point hike in March.
  • Chinese President Xi Jinping is planning to travel to Russia to meet with his counterpart, Vladimir Putin, as soon as next week, people familiar with the matter said, which would be sooner than previously expected.
  • Ukrainian forces faced relentless Russian attacks on Bakhmut in its eastern Donetsk region, with both sides reporting mounting enemy casualties as they battled across a small river that bisects the ruined town and now marks the front line.
  • Britain approved a sharp increase in exports of submarine parts and technology last year to Taiwan as it upgrades its naval forces, a move that could impact British ties with China.
  • US officials stopped hundreds of mostly Venezuelan migrants entering the country from Mexico after a large group broke through Mexican lines to demand asylum in the U.S., only to be thwarted by barbed wire, barriers and shields.

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