Monday Briefing: From DXY, Gold to latest FX Headlines; Oct 03, 2022

US Dollar Index Overview

  • DXY moves in rigid boundaries and consolidates around 112.20 mark.
  • It made intraday high at 112.67 and low at 111.81 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 112.75 to 111.67 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 in stiff boundaries and trading around $1,670 mark.
  • The pair made intraday high at $1,674 and Low at $1,659 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,674 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,658 on H1 chart will test further supports.

Key Headlines for the FX market:

  • British Prime Minister Liz Truss was forced into a humiliating U-turn after less than a month in power, reversing a cut to the highest rate of income tax that helped spark turmoil in financial markets and a rebellion in her party.
  • Oil prices jumped almost $4 as OPEC+ considers reducing output by more than 1 million barrels per day to buttress prices with what would be its biggest cut since the start of the COVID pandemic.
  • Global factory output mostly weakened in September as slowing demand added to the pain from persistent cost pressures and tighter monetary policy, surveys showed, diminishing economic recovery prospects.
  • European telecoms providers are set to win their decade-long fight to make Big Tech pay for network costs, thanks to sympathetic EU regulators and the bloc’s efforts to rein in U.S. tech giants, according to industry and regulatory sources, in the EU’s strongest move yet to set a global standard.
  • The death toll from Hurricane Ian climbed past 80 as embattled residents in Florida and the Carolinas faced a recovery expected to cost tens of billions of dollars.
  • Former President Donald Trump’s administration has not turned over all presidential records and the National Archives will consult with the Justice Department on whether to move to get them back, the agency has told Congress.
  • Ukrainian forces achieved their biggest breakthrough in the south of the country since the war began, bursting through the front and advancing rapidly along the Dnipro River, threatening to encircle thousands of Russian troops.
  • Kyiv gave no official confirmation of the gains, but Russian sources acknowledged that a Ukrainian tank offensive had advanced dozens of kilometers along the river’s west bank, recapturing a number of villages along the way.

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