Monday Briefing: From DXY, Gold to Latest FX Headlines; Sept 26, 2022

US Dollar Index Overview

  • The DXY moves in rigid boundaries and stabilizes above 113.00 mark.
  • It made intraday high at 114.52 and low at 113.23 mark.
  • A day Chart and H1 chart with triple EMA up trend for the time being.
  • Immediate hurdles are seen at 113.89 to 112.89 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 spiked down sharply in early Asia and stabilizes back above $1,640 mark.
  • The pair made intraday high at $1,649 and Low at $1,626 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,652 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,642 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Sterling slumped to a record low, and a renewed selloff in British gilts pushed euro zone yields higher as the fallout from last week’s fiscal statement in Britain roiled markets for a second session. We look at the history of UK currency crises and crashes.
  • Britain’s new economic agenda represents the biggest gamble for growth in a major Western democracy in at least 40 years.
  • Japanese Finance Minister Shunichi Suzuki said authorities stood ready to respond to speculative currency moves, a fresh warning that comes days after Tokyo intervened in the foreign exchange market to stem yen falls for the first time in over two decades.
  • Global economic growth is slowing more than was forecast a few months ago in the wake of Russia’s invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said.
  • The United States warned Moscow of “catastrophic consequences” if it uses nuclear weapons in Ukraine after Russia promised protection to Ukrainian regions it might annex following widely criticized referendums.
  • Citizens in four regions of Ukraine were voting for a fourth day in the Russian-organized referendums that Kyiv and the West have branded a sham.
  • Giorgia Meloni looks set to become Italy’s first woman prime minister at the head of its most right-wing government since World War Two after leading a conservative alliance to triumph at yesterday’s election.

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