Friday Briefing: From DXY, Gold To Updated FX Headlines; Aug 05, 2022

US Dollar Index Overview

• The DXY strengthens sharply after robust U.S. NFP job data.
• It made intraday high at 106.78 and low at 105.69 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 106.75 to 106.20 mark.
• A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Outlook:

XAU/USD:

• Gold spikes down sharply on robust U.S. NFP job results and touches $1,765 mark.

Do keep in mind the updated Gold Technical Chart while trading in Gold during U.S. Session.

Key Headlines for the FX market:

• China’s firing of missiles during military drills around Taiwan was an unjustified escalation, U.S. Secretary of State Antony Blinken said today, as Beijing said it would sanction House of Representatives Speaker Nancy Pelosi for visiting the island.
• Russia and the United States said they were ready to discuss a prisoner swap after a Russian court sentenced basketball star Brittney Griner to nine years in prison for a drugs offense yesterday.
• Adverse weather across top rice suppliers in Asia, including the biggest exporter India, is threatening to reduce the output of the world’s most important food staple and stoke food inflation that is already near record highs.
• The Bank of England is trying to maintain flexibility on its options for changing interest rates and investors should not assume it is set to do more big rate hikes, BoE Chief Economist Huw Pill said.
• China’s firing of missiles during military drills around Taiwan was an unjustified escalation, U.S. Secretary of State Antony Blinken said, as Beijing said it would impose sanctions on House of Representatives Speaker Nancy Pelosi for visiting the island.
• Japanese Foreign Minister Yoshimasa Hayashi said on Friday that Japan remains open to dialogue with China as keeping communications intact is all the more important when ties are strained.
• Sri Lanka is considering a restructure of local and sovereign debt, President Ranil Wickremesinghe said on Friday, as the island nation battles its worst financial crisis in its independent history.

Latest updates on Russia – Ukraine Conflicts:

• Three grain ships left Ukrainian ports under a safe passage deal today while the first inbound cargo vessel since Russia’s invasion was due in Ukraine later in the day to load, and Kyiv called for the pact to be extended to other goods such as metals.
• Russia has banned investors from so-called unfriendly countries from selling shares in certain strategic businesses and banks until the end of the year, a decree signed by President Vladimir Putin showed on Friday.

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