Wednesday Briefing: From DXY, Gold to Latest FX Headlines; May 31, 2023

US Dollar Index Overview

  • DXY rises after mixed key economic results and remains well supported above 104.00 mark.
  • It made intraday high at 104.62 and low at 104.01 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 104.72 to 104.01 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 remains volatile as U.S. released key economic data with mied numbers.
  • The pair made intraday high at $1,973 and Low at $1,955 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,974 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. JOLTS job opening stands at 10.10M vs 9.75M previous release.
  • Ukrainian shelling killed five people in a village in the Luhansk region of eastern Ukraine, Moscow-installed officials said, while a drone attack caused a fire at an oil refinery in southern Russia.
  • Washington is encouraging Kyiv by publicly ignoring the drone attack that struck several districts of Moscow, Russia’s envoy to the United States said, after President Vladimir Putin blamed Ukraine for the strikes.
  • Legislation brokered by President Biden and Speaker Kevin McCarthy to lift the $31.4 trillion US debt ceiling and achieve new federal spending cuts passed an important hurdle, advancing to the full House of Representatives for debate and an expected vote on Wednesday.
  • Florida Governor Ron DeSantis stepped up his attacks on Republican rival Donald Trump as he kicked off his first campaign swing as a presidential candidate in Iowa. While DeSantis rarely alluded to Trump during remarks at an evening rally, he showed less restraint afterward when taking media questions.
  • Former State Department and nuclear regulatory officials urged the US Energy Department to reconsider a plan to use bomb-grade uranium in a nuclear power experiment, saying that its use could encourage such tests in other countries.
  • The Qatari Prime Minister held secret talks with the supreme leader of the Taliban this month on resolving tension with the international community, a source briefed on the meeting said.
  • Credit Suisse has scrapped plans to set up a locally incorporated bank in China to sidestep a potential regulatory conflict arising from its merger with UBS according to two sources with direct knowledge of the matter.
  • Turkey’s lira tumbled to a fresh record low against the dollar as President Tayyip Erdogan prepared to decide the shape of his new cabinet and the direction of economic policy after an election triumph.

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

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