Wednesday Briefing: From DXY, Gold to Latest FX headlines; Jan 25, 2023

US Dollar Index Overview

  • DXY trades noticeably lower during U.S. session and remains well supported below 102.00 mark.
  • It made intraday high at 102.11 and low at 101.76 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.11 to 101.64 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 remains highly volatile during U.S. session and remains well supported above $1,922 mark.
  • The pair made intraday high at $1,939 and Low at $1,919 mark.
  • A day chart is up and H1 chart with triple EMA suggests slightly bearish trend for the time being.
  • A sustained close above $1,937 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,922 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Bank of Canada rose key interest rate to 4.5 pct vs 4.25 pct previous release.
  • Germany announced plans to deliver heavy tanks to Ukraine, and the United States was poised to do so too, a breakthrough hailed as a decisive military boost by Kyiv and condemned by Moscow as a reckless provocation.
  • Heavy snow blanketed wide swaths of Japan, snarling traffic, forcing hundreds of flight cancelations, disrupting train travel and leaving at least one person dead.
  • European Union member states must grant public access to documents circulated in their working groups for adopting laws, an EU court ruled, as efforts to prise open the bloc’s legislative machine make further progress.
  • The man accused of shooting and killing seven farm workers near San Francisco in the latest of two back-to-back gun rampages in California that claimed 18 lives overall is due in court for his initial appearance before a judge.
  • Earnings from major European companies offered some reasons for optimism about the region’s corporate health, even as investors worry about the slowing global economy.

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