Friday Briefing: From DXY, Gold to Latest FX Headlines; March 31, 2023

US Dollar Index Overview

• DXY exhibits range bound movement and remains well supported above 102.00 mark.
• It made intraday high at 102.51 and low at 102.04 mark.
• A day Chart and H1 chart with triple EMA suggest down trend for the time being.
• Immediate hurdles are seen at 102.96 to 102.12 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 as U.S. released Key economic data with mixed numbers.
• The pair made intraday high at $1,987 and Low at $1,973 mark.
• A day chart and H1 chart with triple EMA suggest up trend for the time being.
• A sustained close above $1,984 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,974 on H1 chart will test further supports.

 
Key Headlines for the FX market:

• Donald Trump, the ex-president and frontrunner to be Republican nominee in 2024, is set to face a mug shot, finger-printing and a court appearance next week after being indicted over a probe into hush money paid to a porn star in a historic US first.
• Senior Republicans in Congress and the party’s White House hopefuls rallied behind Trump, calling the charges a weaponization of the justice system by Democrats. We look at how Trump will use the indictment to rouse support for his 2024 campaign.
• An immense spring storm emerging from the Western US is expected to form a 1,000-mile front of extreme weather from the Great Lakes to Texas, spawning blizzards, freezing rain, tornadoes and torrential showers.
• Global mergers and acquisitions activity shrank to its lowest level in more than a decade in the first quarter of 2023, as rising interest rates, high inflation and fears of a recession soured the appetite of companies for dealmaking.
• Britain said it had struck a deal to join an 11-country trans-Pacific trade pact which includes Japan and Australia as it looks to deepen ties in the region and build its global trade links. The UK economy avoided recession after growing in the fourth quarter of last year, official data showed.
• Millions of voters in Europe head to the polls on Sunday.
• Finnish Prime Minister Sanna Marin, who in 2019 became the world’s youngest premier at 34, is battling to stay in power as the country faces a recession and her challengers accuse her government of bloated public spending.
• French President Emmanuel Macron will head to China next week for a rare visit to the rising superpower, in an awkward balancing act between his global statesman ambitions and his struggle to contain embarrassing pension protests at home.

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