Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Feb 28, 2023

US Dollar Index Overview

  • DXY moves in stiff boundaries and remains well supported above 104.00 mark.
  • It made intraday high at 104.89 and low at 104.41 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 104.42 to 105.09 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 spikes up sharply as U.S. released Key Economic data with Negative numbers and jumps back above$1,820 mark.
  • The pair made intraday high at $1,827 and Low at $1,804 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,827 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,817 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. Richmond Manufacturing Index stands at -16 vs -11 previous release.
  • U.S. CB Consumer Confidence stands at 102.9 vs 106.0 previous release.
  • The situation in Bakhmut is “extremely tense”, the commander of Ukrainian ground forces said, as Russian troops besieging it stepped up their assault in a bid to encircle it. Russia is trying to cut the Ukrainian defenders’ supply lines to the city, and force them to surrender or withdraw.
  • Rishi Sunak is in Belfast today to start selling the new post-Brexit trading arrangements he agreed with Brussels, seeking to get unionists onside to finally break the political deadlock in the province.
  • North Korean leader Kim Jong Un urged government officials to engineer a “fundamental transformation” in agricultural production, state media reported, amid fears that the country’s food shortage is worsening.
  • Florida Governor Ron DeSantis signed a bill that takes control of a special tax district surrounding Walt Disney World. State Republicans last year targeted Disney after it publicly clashed with DeSantis over a law that restricts classroom instruction of gender and sexual orientation.
  • The fate of President Biden’s plan to cancel $430 billion in student debt for some 40 million borrowers is placed in the hands of the U.S. Supreme Court today in a case that presents another major test of executive branch authority.
  • China must be more honest about the origins of the COVID-19 pandemic, the U.S. ambassador to China said, after reports that the U.S. Energy Department concluded the pandemic likely arose from a Chinese laboratory leak.
  • British grocery inflation hit 17.1% in the four weeks to February 19, another record high, dealing the latest blow to consumers struggling with a cost-of-living crisis, industry data showed. Market researcher Kantar said prices are rising fastest in markets such as milk, eggs and margarine.
  • Euro zone inflation pressures have begun to ease, including for all-important core prices, but the European Central Bank will not end rate hikes until it is confident price growth is heading back towards 2%, ECB Chief Economist Philip Lane said. The ECB has raised rates by 3 percentage points since July and promised another half a percentage increase in March.

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