Monday Briefing: From DXY, Gold to Latest FX Headlines; May 29, 2023

US Dollar Index Overview

• DXY trades flat on Monday and remains well supported above 104.00 mark.
• It made intraday high at 104.28 and low at 104.04 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 103.76 to 104.32 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 starts a new week on a flat note in the absence of Key Economic Fundamentals from the major countries.
• The pair made intraday high at $1,949 and Low at $1,940 mark.
• A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
• A sustained close above $1,956 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,942 on H1 chart will test further supports.

Key Headlines for the FX market:

• Explosions rocked Kyiv this morning as Russia launched a new air strike on the Ukrainian capital, hours after unleashing dozens of missiles and drones on targets across the country. Panicked residents rushed to take cover when the sky filled with smoke trails and blast clouds, Reuters witnesses said.
• President Tayyip Erdogan and his supporters celebrated an election win extending his rule into a third decade while Turkey’s opposition, once optimistic of winning, braced for “difficult days” against an increasingly autocratic government.
• Spanish Prime Minister Pedro Sanchez said he would dissolve parliament and the country would hold an early general election on July 23 following the results of Sunday’s local elections. Sanchez’s Spanish Socialist Workers’ Party (PSOE) and its junior ally Podemos lost ground during the regional elections, while conservative People’s Party and far-right party Vox outperformed.
• Japan put its ballistic missile defenses on alert and warned that it would shoot down any projectile that threatened its territory after North Korea notified Japan of a satellite launch between May 31 and June 11.
• US President Joe Biden finalized a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025, and said the deal was ready to move to Congress for a vote.
• With countries meeting this week to work on a global plastics treaty, debate was emerging between countries wanting to limit the production of more plastics and the petrochemical industry favoring recycling as the solution to plastic waste.

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