Monday Briefing: From DXY, Gold to Latest FX Headlines; March 27, 2023

US Dollar Index Overview

  • DXY trades in narrow range on Monday and hovers around 103.00 mark.
  • It made intraday high at 103.22 and low at 102.89 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 103.48 to 102.72 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 hits fresh weekly low at $1,944 mark.
  • The pair made intraday high at $1,978 and Low at $1,944 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,962 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,942 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Israeli Prime Minister Benjamin Netanyahu’s coalition plunged into chaos after mass overnight protests over the sacking of his defense chief piled pressure on the government to halt its bitterly contested plans to overhaul the judiciary.
  • NATO slammed Vladimir Putin for “dangerous” nuclear rhetoric after the Russian president announced plans to station tactical nuclear weapons in Belarus, while his forces stepped up shelling of the frontline Ukrainian city of Avdiivka.
  • Former Taiwan President Ma Ying-jeou left for China on a landmark trip, saying he hoped to bring about peace and improve relations. The trip comes at a time of heightened tensions between Beijing and Taipei.
  • Kenyan opposition leader Raila Odinga said protests against President William Ruto’s government over the high cost of living would go ahead today as scheduled despite a police ban.
  • Donald Trump used his first election rally in Waco, Texas, to cast the 2024 presidential vote in apocalyptic terms, slam his leading Republican rival Ron DeSantis, and rail against prosecutors pursuing him with criminal investigations.
  • Airports and bus and train stations across Germany were at a standstill, disrupting millions of commuters and travelers at the start of the work week during one of the largest walkouts in decades in Europe’s largest economy.
  • Iraq’s oil output and capacity may peak following growth of around 25% over the next five years, analysts said, falling short of 2027 targets and ending a long-standing ambition to rival the output of top OPEC producer Saudi Arabia.

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