Monday Briefing: From DXY, Gold to Latest FX Headlines; March 20, 2023

US Dollar Index Overview

  • DXY depreciates on Monday and stabilizes above 103.00 mark.
  • It made intraday high at 103.95 and low at 103.28 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 103.85 to 103.10 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 erases previous gain and slips back below $1,970 mark.
  • The pair made intraday high at $2,009 and Low at $1,965 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,984 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,962 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Banking stocks and bonds plummeted after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse, a deal that was orchestrated in an attempt to restore confidence in a battered sector.
  • UBS emerged as Switzerland’s one and only global bank, a risky bet that makes the Swiss economy more dependent on a single lender. Credit Suisse told staff its wealth assets are operationally separate from UBS for now, but once they merged clients might want to consider moving some assets to another bank if concentration was a concern.
  • Russian President Vladimir Putin will expect Chinese President Xi Jinping to show solidarity against Western hegemony when he arrives in Moscow today, while Xi will present China as a global peacemaker intent on brokering an end to the Ukraine war. Putin, quoting Confucius, has heaped praise on Xi.
  • Xi is walking a diplomatic tightrope, seeking to present China as a global peacemaker while strengthening ties with his closest ally.
  • Justice ministers from around the world will meet in London today to discuss scaling up support for the International Criminal Court after it issued an arrest warrant last week for Putin.
  • A lawyer called to testify behind closed-doors in New York today may challenge the claims of a key witness before a grand jury decides whether to charge former President Donald Trump over hush money paid to a porn star, a source familiar with the matter told Reuters.
  • Israeli Prime Minister Benjamin Netanyahu announced a softening of his hard-right government’s judicial overhaul plan, an apparent bid to calm more than two months of unprecedented nationwide protests and misgivings voiced by Western allies.
  • Police in Kenya’s capital Nairobi fired tear gas to disperse hundreds of people protesting against President William Ruto over the high cost of living and claims of cheating in last year’s election.

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