Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Feb 08, 2023

US Dollar Index Overview

  • DXY trades in narrow range in the absence of key U.S. fundamentals and stabilizes above 103.00 mark.
  • It made intraday high at 103.41 and low at 103.09 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 103.38 to 103.01 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 and remains well supported below $1,890 mark.
  • The pair made intraday high at $1,886 and Low at $1,872 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,886 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,872 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Shares jumped and most currencies rose against the dollar, as investors discerned a dovish tone in comments from Fed Chair Jerome Powell, though a policy tweak by the ECB meant European bonds sat out the rally.
  • Turkish President Tayyip Erdogan visited southern Turkey to see first-hand the destruction wrought by a massive earthquake as anger grew among local people over what they said was a slow government response to the rescue and relief effort.
  • Britain announced an immediate surge of military deliveries to Ukraine to help it fend off an intensifying Russian offensive and pledged to train its pilots as Ukrainian President Volodymyr Zelenskiy arrived in London on a rare visit abroad.
  • The United States held briefings in Washington and Beijing with foreign diplomats from 40 nations about the Chinese spy balloon that entered U.S. airspace in late January, a senior administration official and diplomats said.
  • North Korean leader Kim Jong Un called for strengthening the country’s military, state media reported, as he paid tribute to soldiers and met with troops amid expectations for a major military parade showcasing the latest weapons.
  • Sweden has moved into the spotlight for violent Islamic extremists globally after a number of incidents including the recent public burning of the Muslim holy book, the Koran, the security services said.
  • President Joe Biden challenged Republicans to lift the U.S. debt ceiling and support tax policies that were friendlier to middle class Americans in a State of the Union speech that served as a blueprint for his 2024 re-election campaign.
  • Republicans rejected Biden’s call for bipartisanship, and instead accused him of stoking culture wars in a nation they described as deeply divided.
  • Western sanctions on Russia have significantly reduced state oil revenues and diverted tens of billions of dollars towards shipping and refining firms, some with Russian connections.

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