Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Feb 21, 2023

US Dollar Index Overview

  • DXY exhibits range bound movement and stabilizes above 104.00 mark.
  • It made intraday high at 104.26 and low at 103.76 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 104.25 to 103.81 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 highly volatile in the U.S. session on robust U.S. PMI data and touches key resistance at $1,842 mark.
  • The pair made intraday high at $1,843 and Low at $1,830 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,842 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:

  • U.S. Flash Services PMI stands at 50.5 vs 46.8 previous release.
  • U.S Flash Manufacturing PMI stands at 47.8 vs 46.9 previous release.
  • President Vladimir Putin delivered a nuclear warning to the West over Ukraine, suspending a bilateral nuclear arms control treaty, announcing new strategic systems had been put on combat duty and warning that Moscow could resume nuclear tests.
  • President Joe Biden, fresh from a visit to Kyiv, was set to reaffirm to U.S. allies that the United States is squarely behind Ukraine and committed to bolstering NATO’s eastern flank. Here’s how Biden’s surprise trip to Kyiv was kept secret – but not from Russia.
  • China is “deeply worried” that the Ukraine conflict could spiral out of control, foreign minister Qin Gang said, and called on certain countries to stop “fueling the fire” in an apparent dig at the United States.
  • Weeks of dry winter weather have raised concerns that Italy could face another drought after last summer’s emergency, with the Alps having received less than half of their normal snowfall.
  • Tens of thousands of North Koreans and people in South Korea, Japan and China could be exposed to radioactive materials spread through groundwater from an underground nuclear test site, a Seoul-based human rights group said in a report.
  • The price of permits in the European Union’s carbon market hit 100 euros per tonne for the first time, a milestone that reflects the increased costs that factories and power plants must pay when they pollute.
  • A year into the Federal Reserve’s most aggressive monetary crackdown since the 1980s the strength of the U.S. economy has befuddled policymakers now faced with an unexpected dilemma.

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