Monday Briefing: From DXY, Gold to Latest FX Headlines; Sept 19, 2022

US Dollar Index Overview

  • The DXY starts a new wee on a positive note and trading around 110.00 mark.
  • It made intraday high at 110.17 and low at 109.48 mark.
  • A day Chart and H1 chart with triple EMA up down trend for the time being.
  • Immediate hurdles are seen at 110.30 to 109.50 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 depreciates on Monday and consolidates around $1,665 mark.
  • The pair made intraday high at $1,678 and Low at $1,659 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,672 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:

  • Shares slipped in Asia and the dollar firmed as investors braced for a packed week of central bank meetings that are certain to see borrowing costs rise across the globe, with some risk of a super-sized hike in the United States.
  • Just months ago, investors worried the Federal Reserve was not fighting inflation aggressively enough. Several jumbo rate hikes later, some now fear the Fed will plunge the economy into recession by tightening monetary policy too quickly.
  • Leaders and monarchs from around the world gathered in London to bid farewell to Queen Elizabeth at a state funeral of inimitable pageantry, marking the passing of a beloved figure who helped unify the nation through her 70-year reign.
  • Ukrainian President Volodymyr Zelenskiy vowed there would be no let-up in fighting to regain territory lost to Russia as Kyiv said its troops had advanced to the eastern bank of the Oskil River, threatening Russian occupation forces in the Donbas.
  • President Joe Biden said that his predecessor Donald Trump’s handling of classified documents was “totally irresponsible” but that he is staying out of the investigation.
  • In the same interview, Biden said that “the pandemic is over,” even though the country continues to grapple with coronavirus infections that kill hundreds of Americans daily. He also said U.S forces would defend Taiwan in the event of a Chinese invasion, his most explicit statement so far on the issue.
  • A 6.8 magnitude earthquake hit the sparsely populated southeastern part of Taiwan, the island’s weather bureau said, derailing train carriages, causing a convenience store to collapse and trapping hundreds on mountain roads.

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