Friday Briefing: From DXY, Gold to Latest FX Headlines; Nov 25, 2022

US Dollar Index Overview

  • DXY remains almost unchanged on Friday and stabilizes above 106.00 mark.
  • It made intraday high at 106.22 and low at 105.68 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 106.50 to 105.68 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 moves narrow range on Friday and hover around $1,750 mark.
  • The pair made intraday high at $1,761 and Low at $1,749 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,762 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,748 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Much of Ukraine remained without heat or power after the most devastating Russian air strikes on its energy grid so far, and in Kyiv residents were warned to brace for further attacks and stock up on water, food and warm clothing.
  • Malaysia’s newly appointed Prime Minister Anwar Ibrahim said his primary focus would be on the cost of living as he takes office with a slowing economy and a country deeply split after a close election.
  • Israeli Prime Minister-designate Benjamin Netanyahu’s conservative Likud party signed its first coalition deal with Itamar Ben-Gvir’s far-right Jewish Power party. The agreement, which does not account for a full and final new government in Israel, gives Ben-Gvir the police ministry and a seat in the security cabinet.
  • The United States marked the Thanksgiving holiday with traditional feasts, parades and American football, taking a moment to celebrate in a week shadowed by gun violence.
  • Investors are closely watching U.S. retail stocks as a barometer of consumer confidence, as the most important shopping season of the year begins. Europe’s retailers are hoping Black Friday discount day will get shoppers spending, though it takes place against a backdrop of a worsening cost-of-living crisis.
  • Twitter will roll out verified gold and grey check marks as it relaunches the coveted blue check service next Friday, Chief Executive Officer Elon Musk said in a tweet, after holding off the rollout earlier this week.
  • Turkey and Qatar are in the final stages of talks for Doha to provide up to $10 billion in funding for Ankara, including up to $3 billion by the end of this year.
  • The foreign funding could help shore up forex reserves to backstop President Tayyip Erdogan’s unorthodox policy of pursuing interest rate cuts and other stimulus measures despite soaring inflation and a slumping lira currency.
  • Ghana’s government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook. The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

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