Friday Briefing: From DXY Gold to Latest FX Headlines; June 02, 2023

US Dollar Index Overview

• DXY trades marginally higher on mixed U.S. NFP job results and stabilizes above 103.50 mark.
• It made intraday high at 103.76 and low at 103.38 mark.
• A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
• Immediate hurdles are seen at 104.02 to 103.38 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 weakens after U.S. NFP job data and slips back below $1,970 mark.
• The pair made intraday high at $1,983 and Low at $1,961 mark.
• A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
• A sustained close above $1,967 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,958 on H1 chart will test further supports.

Key Headlines for the FX market:

• U.S. NFP Employment Change Stands at 339K vs 294K previous release.
• U.S. Unemployment Rate stands at 3.7 pct vs 3.4 pct previous release.
• The governor of Russia’s Belgorod region said that two people were killed after Ukraine shelled a town near the border, while officials in nearby regions reported overnight drone attacks.
• The US is seeking to secure supplies of TNT in Japan for 155mm artillery shells, as Washington rushes weapons and ammunition to Ukraine for a counteroffensive against Russia, two people familiar with the matter said.
• BRICS foreign ministers asserted their bloc’s ambition to rival Western powers but their talks in South Africa were overshadowed by questions over whether Russia’s president would be arrested if he attended a summit in August.
• Asia’s top security meeting opened today, with intensifying competition between the US and China expected to dominate a weekend of high-level speeches, backroom military dealings and delicate diplomacy.
• Japan’s birth rate declined for the seventh consecutive year in 2022 to a record low, the health ministry said, underscoring the sense of crisis gripping the country as the population shrinks and ages rapidly.
• The US Senate passed bipartisan legislation backed by President Joe Biden that lifts the government’s $31.4 trillion debt ceiling, averting what would have been a first-ever default. Senators voted 63-36 to approve the bill that had been passed on Wednesday by the House of Representatives.
• OPEC and its partners meet on Sunday to discuss oil production.
• Biden welcomes Danish Prime Minister Mette Frederiksen to the White House on Monday.

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