Monday Briefing: From DXY, Gold to Latest FX Headlines; Aug 08, 2022

US Dollar Index Overview

• The DXY falls gradually on Monday and stabilizes below 106.50 mark.
• It made intraday high at 106.80 and low at 106.25 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 recovers noticeably from last Friday’s loss and currently stabilizes above $1,780 mark.
• The pair made intraday high at $1,784 and Low at $1,771 mark.
• A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
• A sustained close above $1,786 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,772 on H1 chart will test further supports.

Key Headlines for the FX market:

• Global stock markets gained ground on Monday, recovering from losses sparked by a strong U.S. jobs report last week that bolstered the case for sharp interest rate hikes, while the dollar weakened and government bond yields fell.
• China’s military announced fresh military drills in the seas and airspace around Taiwan – a day after the scheduled end of its largest ever exercises to protest against last week’s visit to Taipei by U.S. House Speaker Nancy Pelosi.
• South Korea’s foreign minister Park Jin is set for his first visit to China today as President Yoon Suk-yeol’s government seeks to reassure Beijing about their relationship.
• France braced for a fourth heat wave this summer as its worst drought on record left parched villages without safe drinking water and farmers warned of a looming milk shortage in the winter.
• Democrats scored a major policy victory when the U.S. Senate passed a $430 billion climate change, healthcare and tax bill that will help reduce the carbon emissions that drive climate change while also cutting drug costs for the elderly.
• Public support for Japanese Prime Minister Fumio Kishida slid to the lowest level since he took office last October, with voters questioning his decision to hold a state funeral for former premier Shinzo Abe, public broadcaster NHK said on Monday.

Latest updates on Russia – Ukraine Conflicts:

• U.N. Secretary-General Antonio Guterres called for international inspectors to be given access to the Zaporizhzhia nuclear plant after Ukraine and Russia traded accusations over shelling of Europe’s largest atomic complex at the weekend.
• Kyiv warns of Chornobyl-style disaster unless area secured.
• Two Ukrainian grain ships leave ports, 12 since last week.

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