Thursday Briefing: From DXY, Gold to Latest FX Headlines, June 01, 2023

US Dollar Index Overview

• DXY falls on Thursday after key U.S. Economic Indicators and slips back below 104.00 mark.
• It made intraday high at 104.50 and low at 103.73 mark.
• A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
• Immediate hurdles are seen at 104.27 to 103.76 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 recovers sharply on Thursday as U.S. released key fundamentals with mixed numbers.
• The pair made intraday high at $1,977 and Low at $1,953 mark.
• A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
• A sustained close above $1,976 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,967 on H1 chart will test further supports.

Key Headlines for the FX market:

• U.S. ADP Non Farm Employment Change stands at 278K vs 291K previous release.
• U.S. Unemployment claims weekly stands at 232K vs 230K previous release.
• U.S. ISM Manufacturing PMI stands at 46.9 vs 47.1 previous release.
• The US Senate is set to take up a bill to lift the government’s $31.4 trillion debt ceiling, with just four days left to pass the measure and send it to President Joe Biden to sign. The top Democrat and Republican in chamber vowed to do all they could to speed along the bill negotiated by Biden and Republican House of Representatives Speaker Kevin McCarthy.
• President Volodymyr Zelenskiy pressed his case for Ukraine to be part of the NATO military alliance as he joined European leaders in Moldova. Zelenskiy also reiterated calls for Western fighter jets and said his government was preparing a future meeting to discuss Ukrainian peace proposals.
• Foreign ministers from the BRICS countries are meeting in South Africa as the bloc seeks to forge itself into a counterweight to Western geopolitical dominance. The talks are a prelude to an August summit that has already created controversy because of the possible attendance of Russian President Vladimir Putin.
• In a sign of confidence that the worst of Sri Lanka’s financial crisis is over, its central bank surprised markets by cutting interest rates, signaling a change of course to fuel a rebound in the economy.
• Euro zone inflation eased more than expected last month as underlying price growth also slowed. Inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3%. The reading came as only a modest surprise as national data earlier this week foreshadowed the drop.

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