Thursday Briefing: From DXY, Gold to Latest FX Headlines; March 02, 2023

US Dollar Index Overview

  • DXY appreciates in U.S. Session after robust U.S. Unemployment Claims weekly data and hovers around 105.00 mark.
  • It made intraday high at 105.15 and low at 104.38 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 105.15 to 104.49 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 remains almost unchanged despite robust U.S. Unemployment Claims data and consolidates around $1,832 mark.
  • The pair made intraday high at $1,838 and Low at $1,830 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,838 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,832 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Indian Prime Minister Narendra Modi called for common ground on global issues as he inaugurated a meeting of G20 foreign ministers in New Delhi that looks set to be dominated by the war in Ukraine. European and U.S. delegates have reiterated that they hold Russia responsible.
  • Ukrainian forces hung onto their positions in the city of Bakhmut under constant attack from Russian troops seeking to claim their first major victory for more than half a year.
  • North Korean leader Kim Jong Un ordered improvements to infrastructure and expansion of farmland to ramp up food production, state media said. South Korea has warned of an mounting food crisis in the isolated North, including a recent surge in deaths from hunger in some regions.
  • Vietnam’s National Assembly elected Vo Van Thuong as the country’s new president, in a reshuffle of top leadership amid a sweeping anti-graft campaign.
  • Snow blanketed California the last weekend of February, only weeks after it was pummeled by torrential rains. But these historic storms barely made a dent in a daily reality for most in the state — a years-long, expansive drought.
  • President Joe Biden plans to ask Congress to provide $1.6 billion in new funding to tackle fraud tied to U.S. pandemic relief programs and help victims of identity theft, the White House said.
  • A Republican bill to prevent pension fund managers from basing investment decisions on factors like climate change cleared Congress, setting up a confrontation with Biden, who is expected to veto the measure.
  • The White House announced a new cybersecurity strategy in the latest effort by the government to bolster its cyber defenses amid a steady increase in hacking and digital crimes targeting the country.
  • Euro zone inflation fell less than expected last month and underlying price growth surged, reinforcing the case for the European Central Bank to keep raising interest rates at a brisk pace, data from Eurostat showed.
  • China is becoming increasingly ambitious with its 2023 growth target, aiming potentially as high as 6%, in a bid to boost investor and consumer confidence and build on a promising post-pandemic recovery, sources involved in policy discussions said.
  • Retail theft has hit record levels in Australia, government statistics show, putting pressure on grocery giants Woolworths and Coles that are already struggling with soaring supply costs and freight blockages.

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