Monday Briefing: From DXY, Gold to Latest FX Headlines; Nov 28, 2022

US Dollar Index Overview

  • DXY moves in narrow range and hovers around 106.00 mark.
  • It made intraday high at 106.52 and low at 105.32 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 105.51 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 weakens sharply on Monday and slips back below $1,750 mark.
  • The pair made intraday high at $1,763 and Low at $1,745 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:

  • South Korea failed to reach agreement with a striking truckers’ union in the first session of talks on the fifth day of a nationwide walkout, the union said, as supply chain glitches worsen and concrete runs out at building sites.
  • Credit Suisse bonds fell and the cost of insuring its debt against default rose on Monday as the Swiss bank struggled to win over rattled investors following an exodus of client cash and with more litigation on the horizon
  • The head of Australia’s central bank on Monday apologised to people who regretted taking out mortgages last year based on his guidance that interest rates were unlikely to rise until 2024, only for rates to start climbing in May.
  • Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans.
  • Brazil’s National Monetary Council on Friday decided to allow credit fintechs to initiate payment transactions, the central bank said, a move that will in practice clear them to provide payment services to consumers and business establishments.
  • Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China’s stringent COVID restrictions flared for a third day and spread to several cities in the wake of a deadly fire in the country’s far west.
  • Uganda’s President Yoweri Museveni has extended a quarantine placed on two districts that are the epicentre of the country’s Ebola outbreak by 21 days, adding that his government’s response to the disease was succeeding.
  • China reported its fourth straight daily record of 39,791 new COVID-19 infections on Nov. 26, of which 3,709 were symptomatic and 36,082 were asymptomatic, the National Health Commission said on Sunday.

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