Friday Briefing: From DXY, XAUUSD to Latest FX headlines; Sept 16, 2022

US Dollar Index Overview

  • The DXY moves in stiff boundaries and consolidates around 110.00 mark.
  • It made intraday high at 110.26 and low at 109.56 mark.
  • A day Chart and H1 chart with triple EMA up down trend for the time being.
  • 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 in U.S. session as U.S. released prelim UoM Consumer Sentiment data with Flat numbers.
  • The pair made intraday high at $1,672 and Low at $1,654 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,678 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,655 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Ukrainian authorities found a mass grave containing 440 bodies in a northeastern city recaptured from Russian forces, calling it proof of war crimes carried out by the invaders in territory they had occupied for months.
  • Kyrgyzstan said it agreed a ceasefire with its Central Asian neighbor Tajikistan after a deadly border conflict between the two Russia allies escalated towards war, involving tanks and rocket artillery.
  • The miles-long queue of mourners waiting to see Queen Elizabeth lying in state in London was temporarily closed after it reached capacity. Tens of thousands of people have come to pay their respects to the late queen, joining a well-organized line that snakes along the south bank of the Thames then over the river to Westminster Hall.
  • At least eight people have been killed by torrential overnight rains and floods in the central Italian region of Marche, authorities said, as rescuers continued to search for four people missing.
  • Two COVID-19 antibody therapies are no longer recommended by the World Health Organization, on the basis that Omicron and the variant’s latest offshoots have likely rendered them obsolete. The two therapies were some of the first medicines developed early in the pandemic.
  • British retail sales fell much more than expected in August, in another sign that the economy is sliding into recession as the cost of living crunch squeezes households’ disposable spending. The pound tumbled to a fresh 37-year low against the U.S. dollar, and a 17-month trough against the euro.
  • China’s economy showed surprizing resilience in August, with faster-than-expected growth in factory output and retail sales shoring up a fragile recovery, but a deepening property slump weighed on the outlook.
  • Germany took control of a major Russian-owned oil refinery in the latest move to shore up vital energy supplies that have been jeopardized by Russia’s war in Ukraine.

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