Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Jan 10, 2023

US Dollar Index Overview

  • DXY trades in narrow range and remains well supported above 103.00 mark.
  • It made intraday high at 103.49 and low at 103.21 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 103.79 to 102.98 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 moves in rigid boundaries ahead of U.S. inflation results due on Thursday and currently trading around$1,876 mark.
  • The pair made intraday high at $1,880 and Low at $1,867 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,882 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,867 on H1 chart will test further supports.


Key Headlines for the FX market:

  • Russian troops have stepped up an assault on the town of Soledar in eastern Ukraine, forcing Ukrainian troops to repel waves of attacks led by mercenary forces, officials in Kyiv said.
  • Beijing retaliated against South Korea’s COVID-19 curbs on travelers from China, while state media further downplayed the severity of the outbreak in the last major economy to reopen its borders after three years of isolation.
  • Far-right former Brazilian President Jair Bolsonaro was admitted to a hospital in Florida with stomach pains as 1,500 of his supporters were rounded up in Brasilia after storming key buildings in the capital over the weekend.
  • The latest in a string of Pacific storms blamed for at least 12 deaths soaked California, prompting evacuations of some 25,000 people, including the entire town of Montecito and nearby areas of the Santa Barbara coast, due to heightened flood and mudslide risks.
  • Classified documents from Joe Biden’s vice-presidential days were discovered in November by the U.S. president’s personal attorneys at a Washington think tank, a White House lawyer said.
  • The House of Representatives adopted a package of internal rules that give right-wing hardliners more leverage over the chamber’s newly elected Republican speaker, Kevin McCarthy.
  • Britain’s attempt to become the first European nation to launch satellites into space ended in bitter disappointment when Virgin Orbit said its rocket had suffered an anomaly that prevented it from reaching orbit.
  • U.S. banking giants are forecast to report lower fourth-quarter profits this week as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking.
  • U.S. small-business confidence slid to a six-month low in December, according to a survey that also showed that inflation and worker shortages remained major issues for firm owners.
  • Qatar’s stock market is set to welcome its first initial public offering in almost three years in a test of new regulations that Doha has introduced, hoping to compete with more active exchanges in the region.

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