Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Feb 22, 2023

US Dollar Index Overview

  • DXY trades marginally higher ahead of U.S. FOMC Meeting minutes and remains well supported above 104.00 mark.
  • It made intraday high at 104.34 and low at 104.00 mark.
  • A day Chart is down but H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 104.35 to 103.81 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. FOMC meeting minutes due at 1900 GMT.
  • The pair made intraday high at $1,846 and Low at $1,832 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,842 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,832 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Global shares traded around their lowest levels in more than a month and U.S. Treasury yields stuck to around their highest since November, as fresh fears about inflation and interest rates weighed on market sentiment.
  • U.S. President Joe Biden will meet leaders of NATO’s eastern flank today while China’s top diplomat holds talks in Moscow – contrasting shows of support ahead of the first anniversary of Russia’s invasion of Ukraine.
  • Putin revoked a 2012 decree that in part underpinned Moldova’s sovereignty in resolving the future of the Transdniestria region – a Moscow-backed separatist region which borders Ukraine and where Russia keeps troops.
  • A year since Putin sent troops into Ukraine, the views of Russia’s 145 million people about the war are still difficult to discern.
  • A winter storm spreading across the U.S. West into the Northern Plains and Midwest could produce blizzards, brutal cold, and record snowfall, making roads treacherous and disrupting air travel.
  • The foreperson of a Georgia grand jury that investigated former U.S. President Donald Trump’s attempts to overturn his 2020 election defeat in the state told media that the panel recommended multiple criminal indictments.
  • Seattle became the first U.S. city to outlaw caste discrimination, after its local council voted to add caste to the city’s anti-discrimination laws. The move addresses an issue important to the area’s South Asian diaspora, particularly the Indian and Hindu communities.
  • Nigerians will vote on Saturday in what could be their most credible and close electoral contest since military rule ended nearly a quarter of a century ago.

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