Monday Briefing: From DY, Gold to Latest FX Headlines; Feb 06, 2023

US Dollar Index Overview

  • DXY appreciates on Monday and remains well supported above 103.00 mark.
  • It made intraday high at 103.45 and low at 103.01 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 103.70 to 103.01 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 exhibits range bound movement in the absence of key U.S. fundamentals and consolidates around $1,872 mark.
  • The pair made intraday high at $1,881 and Low at $1,871 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,882 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,864 on H1 chart will test further supports.

Key Headlines for the FX market:

  • More than 1300 people were killed and thousands injured when a major earthquake of magnitude 7.8 struck central Turkey and northwest Syria, collapsing buildings and triggering searches for survivors in the rubble.
  • Ukraine is set to replace Defense Minister Oleksii Reznikov with the chief of its military spy agency, a close ally of President Volodymyr Zelenskiy said, in a reshuffle at the forefront of Ukraine’s war campaign.
  • Health workers in Britain began their largest strike, as tens of thousands of nurses and ambulance workers walk out in an escalating pay dispute, putting further strain on the state-run National Health Service. Nurses and ambulance workers have been striking separately on and off since late last year but today’s walkout involving both, largely in England, is the biggest in the 75-year history of the NHS.
  • A senior leader of Taiwan’s main opposition party will visit China this week and meet its top Taiwan policy-maker amid continued military and political tensions between the two sides.
  • The U.S. military said it was searching for remnants of the suspected Chinese surveillance balloon it shot down, while Beijing urged Washington not to escalate the issue or take further action.
  • A leading conservation research group NatureServe, which analyses data from its network of over 1,000 scientists across the U.S. and Canada, found that 40% of animals and 34% of plants in the U.S. are at risk of extinction, while 41% of ecosystems are facing collapse.
  • Global shares tumbled on Monday, after a run of upbeat economic data suggested interest rates will have to rise further and stay higher for longer, while a stronger dollar and political turbulence hit risk-linked assets.
  • Last week’s blockbuster U.S. jobs report sent investors scurrying to load up on dollars to the detriment of emerging market assets and lower-yielding currencies like the yen.
  • Russia was willing to meet India’s oil needs at ‘market price’, the CEO of top Russian oil major told Reuters. In December, the Group of Seven, the European Union and Australia enforced a price cap on crude oil, aiming to reduce Moscow’s ability to finance its war in Ukraine and preserve stability on the global oil market.

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