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

US Dollar Index Overview

  • DXY trades in narrow range as markets eye U.S. FOMC Interest Rate Decision and stabilizes above 103.00 mark.
  • It made intraday high at 103.23 and low at 103.01 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 103.48 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 exhibits range bound movement and remains well supported above $1,930 mark.
  • The pair made intraday high at $1,952 and Low at $1,934 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,954 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,936 on H1 chart will test further supports.

Key Headlines for the FX market:

  • While recent market turmoil has eased, the Federal Reserve’s meeting is now the major focus, with traders split over whether the U.S. central bank will be forced to pause its hiking cycle.
  • China’s President Xi Jinping and Russia’s President Vladimir Putin set their sights on shaping a new world order as the Chinese leader left Moscow, having made no direct support for Putin’s war in Ukraine during his two-day visit.
  • About half of Americans believe a New York investigation into whether Donald Trump paid hush money to a porn star is politically motivated, but a large majority find the allegations believable, a Reuters/Ipsos opinion poll found.
  • North Korea fired multiple cruise missiles off its east coast, South Korea’s military said, the latest in a series of weapons tests as South Korean and the U.S. forces conduct joint military exercises.
  • British Prime Minister Rishi Sunak is set to win parliamentary approval for a key element of a post-Brexit deal on Northern Ireland, a victory tainted by a lack of support from the province’s biggest unionist party and some of his lawmakers.
  • Uganda’s parliament passed a law making it a crime to identify as LGBTQ, handing authorities broad powers to target gay Ugandans who already face legal discrimination and mob violence.
  • Swiss authorities imposed curbs on bonus payments for Credit Suisse employees, a move that will penalize bankers after a multi-billion-franc state rescue of the bank.
  • British consumer price inflation unexpectedly rose to 10.4% in February, pushed up by drinks prices in pubs and restaurants, official data showed, a day before the Bank of England announces its latest decision on interest rates.

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