Tuesday Briefing: From DXY, Gold to Latest FX Headlines; March 14, 2023

US Dollar Index Overview

  • DXY remains volatile after U.S. CPI data and slips back below 104.00 mark.
  • It made intraday high at 104.04 and low at 103.49 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 104.31 to 103.56 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 weakens as U.S. released CPI data with flat to positive numbers and currently stabilizes back above $1,900 mark.
  • The pair made intraday high at $1,914 and Low at $1,895 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,917 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,898 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. CPI stands at 0.4 pct vs 0.5 pct previous release.
  • U.S. Core CPI stands at 0.5 pct vs 0.4 pct previous release.
  • Shockwaves from the collapse of Silicon Valley Bank further pounded global bank stocks despite President Joe Biden’s efforts to reassure markets. Emergency U.S. measures to shore up banks by giving them access to additional funding failed to dispel investor worries.
  • Ratings agency Moody’s downgraded the debt ratings of collapsed New York-based Signature Bank deep into junk territory and placed the ratings of six other U.S. banks under review for a downgrade.
  • India plans to force smartphone makers to allow removal of pre-installed apps and mandate screening of major operating system updates under proposed new security rules, according to two people and a government document seen by Reuters.
  • Ukraine has accused two Russian soldiers of sexually assaulting a four-year-old girl and gang raping her mother, according to Ukrainian prosecution files seen by Reuters that detail widespread allegations of abuse.
  • Taiwan showcased new models of its domestically produced military drones, saying they are key to its “asymmetric warfare” capacity to make its forces more agile if they have to face a far larger Chinese military.
  • China will reopen its borders to foreign tourists for the first time in the three years by allowing all categories of visas to be issued. The removal of this last cross-border control measure imposed to guard against COVID-19 comes after authorities last month declared victory over the virus.
  • President Joe Biden will announce an executive order that reinforces background checks for gun buyers in what the White House is promoting as the most comprehensive policy the president can enact without Congress.

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