
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
2022-12-15 • Updated
On March 16 the Federal Reserve hosted the press conference where it announced several disappointing facts about the US economy. The FOMC raised the forecast for the US inflation for 2022 to 4.3% from 2.6% despite the key rate upgrade. Moreover, the Fed sharply downgraded the forecast for US GDP for 2022 to 2.8% from 4%.
The US politicians and the White House have been blaming the Russia-Ukraine conflict and supply chain issues for inflation growth. However, it looks more like American authorities offer excuses for a failed monetary policy, extreme price growth, and huge government debt.
The US dollar has been the reserve currency since 1944. Moreover, even today most of the payments for oil transactions are in dollars, which supports the US currency. However, nowadays, leaders of China, Russia, Saudi Arabia, and India work new settlement system, which will exclude the US dollar.
For instance, Saudi Arabia considers using the yuan instead of the US dollar to pay for part of the oil that the kingdom supplies to China. China buys more than 25% of the oil exported by Saudi Arabia, and the kingdom is China's largest oil supplier. The authorities of Saudi Arabia and representatives of big business are increasingly dissatisfied with the foreign policy of the US administration.
India and Russia also consider excluding the US dollar from payments and moving to trade settlements in rubles and rupees. The nations want to use the Chinese yuan as the base currency. The new mechanism will allow Indian exporters to get payment for their goods in local currency instead of dollars or euros.
These innovations in the Asian region can significantly reduce the demand for the US dollar and weaken it.
The Fed got trapped between extremely high inflation and the rising government debt of the United States. It might play a bad joke on the USD in the nearest future. The world might lose trust in the White House and turn to other currencies such as the Chinese yuan.
USD, weekly chart
Resistance: 99.3
Support: 97
The US dollar index (DXY) has formed a bearish divergence on the weekly timeframe. The price might decline to 97 within a couple of weeks. Moreover, in the case of lower border breakout, we might see a further decline to 95.2.
GBPUSD, weekly chart
Resistance: 1.3190, 1.3370, 1.3520
Support: 1.2950, 1.2740
The Bank of England was the first to increase the key rate. On March 17 policymakers increased the rate for the third time up to 0.75. In long term, such steps might make a significant effect on GBP and push it higher against other currencies.
The chart has formed a bullish flag. Traders might consider purchasing GBPUSD at 1.2950 support or after a breakout of the upper border of the flag.
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.