Wednesday Briefing: From DXY, Gold to Latest FX headlines; Jan 11, 2023

US Dollar Index Overview

  • DXY exhibits range bound movement and stabilizes above 103.00 mark.
  • Traders eye U.S. CPI, Core CPI data due tomorrow.
  • It made intraday high at 103.48 and low at 103.18 mark.
  • A day Chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • Immediate hurdles are seen at 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 enjoys roller coaster movement ahead of U.S. CPI, Core CPI data due tomorrow.
  • The pair made intraday high at $1,886 and Low at $1,872 mark.
  • A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • A sustained close above $1,884 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:

  • A U.S. Federal Aviation Administration system outage is leading to delays at airports across the country due to ‘ground stops’, Austin-Bergstrom International Airport said. More than 760 flights were delayed within, into, or out of the United States, flight tracking website FlightAware showed.
  • Republicans controlling the U.S. House of Representatives voted to launch an investigation into what they term President Joe Biden’s weaponization of the federal government, but Democrats branded it a partisan fishing expedition.
  • The House of Representatives Republicans who tried to block Kevin McCarthy’s leadership bid last week share more than far-right political views. They also command powerful fundraising machines powered by small-dollar donations.
  • Biden said he was surprised to learn that classified documents were found in a think-tank office he once used and said he and his team are cooperating fully with a review into what happened.
  • The latest Pacific storm unleashed torrential downpours and damaging winds in California, knocking out power and turning city streets into rivers as mudslides cut off highways and entire communities faced evacuation orders.
  • Russian and Ukrainian forces were engaged in intense fighting over the town of Soledar in eastern Ukraine – a stepping stone in Moscow’s push to capture the entire Donbas region – with the Russians appearing to have the upper hand.
  • China introduced transit curbs for South Korean and Japanese nationals, in an escalating diplomatic spat over COVID-19 curbs. Countries should consider recommending that passengers wear masks on long-haul flights, given the rapid spread of the latest Omicron subvariant, World Health Organization officials said.
  • The World Bank slashed its 2023 growth forecasts to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies, Russia’s war in Ukraine continues, and the world’s major economic engines sputter.

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