Monday Briefing: From DXY, Gold to Latest FX Headlines; March 25, 2024

US Dollar Index Overview

• DXY exhibits range bound movement and trading around 104.00 mark.
• It made intraday high at 104.46 and low at 104.17 mark.
• A day Chart and H1 chart with triple EMA suggest downside movement for the time being.
• Immediate hurdles are seen at 104.58 to 103.84 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 and remains well supported above $2,170 mark.
• The pair made intraday high at $2,181 and Low at $2,164 mark.
• A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
• A sustained close above $2,178 on H1 chart requires for the downside rally.
• Alternatively, a consistent close below $2,164 on H1 chart will test further supports.

Key Headlines for the FX market:

• Russia cast doubt on assertions by the US that the Islamic State militant group was responsible for a gun attack on a concert hall outside Moscow which killed 137 people and injured 182 more.
• Russia struck critical infrastructure in Ukraine’s western region of Lviv with missiles, Kyiv said, in a major airstrike that saw one Russian cruise missile briefly fly into Polish airspace according to Warsaw.
• Donald Trump faces a Monday deadline to post a bond to cover a $454 million civil fraud judgment or face the risk of New York state seizing some of his marquee properties.
• UN Secretary-General Antonio Guterres said during a visit to Jordan that there is growing international consensus to tell Israel that a ceasefire is needed and that an assault on Rafah would cause a humanitarian disaster.
• The Philippines summoned China’s envoy to protest against “aggressive actions” in the South China Sea, as Manila’s defense minister dared Beijing to bolster its vast sovereignty claims by taking them to international arbitration.
• US President Joe Biden and Japanese Prime Minister Fumio Kishida will agree next month to tighter military cooperation, including talks on the biggest potential change to Washington’s East Asia command structure in decades, two sources said.
• Britain will give details of the cyber security threat it says is posed by China and may blame Beijing for a hack on its electoral watchdog, as worries about interference grow before an election expected later this year.
• Early results from Senegal’s presidential vote put opposition candidate Bassirou Diomaye Faye ahead, sending his supporters to celebrate in the streets, though his main rival from the ruling coalition said a run-off will be needed to determine the winner.
• Washington’s drive to make the US a major global lithium producer is being held back by a confusing mix of state regulations that are deterring developers and hampering efforts to break China’s control of the critical minerals sector.
• Boosted by strong electric vehicle sales, Chinese car makers will be in the spotlight at the Bangkok International Motor Show this week, underscoring the growing challenge to Japanese auto giants that have long dominated Thailand’s vehicle market.
• The US Federal Reserve looks to be on track to cut interest rates as presidential campaign season heats up, potentially delivering Joe Biden a boost.
• Chinese regulators are pushing banks to speed up approvals of new loans to cash-starved private property developers, people with knowledge of the matter said, a bid to revive homebuyer sentiment that risks denting lenders’ asset quality.
• The U.S. Federal Reserve looks on track to cut interest rates as the presidential campaign season heats up, potentially delivering President Joe Biden a boost as polls show Americans dislike his handling of the economy.

Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!

Good Luck