Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Jan 31, 2023

US Dollar Index Overview

• DXY erases previous gain against U.S. dollar ahead of U.S. key fundamentals and stabilizes above 102.00 mark.
• It made intraday high at 102.60 and low at 102.18 mark.
• A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
• Immediate hurdles are seen at 102.62 to 102.00 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 recovers sharply from previous losses and rejects key support at $1,899 mark.
• The pair made intraday high at $1,927 and Low at $1,899 mark.
• A day chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
• A sustained close above $1,922 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,902 on H1 chart will test further supports.

 
Key Headlines for the FX market:

• A large Russian force has advanced hundreds of meters in a major new assault on a Ukrainian-held bastion in southeastern Ukraine this week, though it is unlikely to force a significant breakthrough there, Britain said.
• The defense chiefs of the United States and South Korea vowed to expand military drills and boost nuclear deterrence planning to counter North Korea’s weapons development and prevent a war. U.S. Defense Secretary Lloyd Austin was in Seoul for talks as Washington seeks to reassure a key Asian ally over its nuclear commitment.
• A second nationwide strike disrupted French electricity production, public transport and schools, in a backlash against the government’s plans to make people work longer before retirement.
• Australia’s nuclear safety agency said it had joined the hunt for a tiny radioactive capsule missing somewhere in the outback, sending a team with specialized car-mounted and portable detection equipment.
• A Democratic president. A new Republican majority in the U.S. House of Representatives pushing for sharp spending cuts. A rapidly growing pile of debt – and a showdown that threatens to throw the global economy into turmoil.
• President Joe Biden will visit New York City today to tout new infrastructure funding for a critical underwater tunnel that connects Manhattan and New Jersey, an effort that has been mired for more than a decade in partisan bickering and ballooning budgets.
• Biden’s administration said it will end COVID emergency declarations on May 11, nearly three years after the United States imposed sweeping pandemic measures to curb the spread of the illness.
• The International Monetary Fund raised its 2023 global growth outlook slightly due to “surprisingly resilient” demand in the United States and Europe, an easing of energy costs and the reopening of China’s economy after Beijing abandoned its strict COVID restrictions.
• China’s economic activity swung back to growth in January and the euro zone avoided a recession in the final three months of 2022, data released today shows. But three years on, Britain is still waiting for a Brexit dividend.

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