Thursday Briefing: From DXY, Gold to Latest FX Headlines; Aug 18, 2022

US Dollar Index Overview

  • The DXY weakens in early U.S. Session and hovers around 106.50 mark.
  • It made intraday high at 106.95 and low at 106.51 mark.
  • A day Chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • Immediate hurdles are seen at 106.95 to 106.32 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Gold (XAU/USD):

  • Gold enjoys roller coaster movement on Thursday and hovers around $1,770 mark.
  • U.S. released Philly Fed Manufacturing Index and Unemployment claims weekly data with positive numbers.
  • Traders eye Existing Home Sales data scheduled at 1400 GMT/1930 IST.
  • The pair made intraday high at $1,772 and Low at $1,760 mark.
  • A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • A sustained close above $1,772 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,760 on H1 chart will test further supports.
$1,758 $1,778
$1,752 $1,784
$1,747 $1,789
$1,742 $1,794
$1,737 $1,799

Key Headlines for the FX market:

  • NATO will increase its peacekeeping force in Kosovo if there is an escalation of tensions with neighboring Serbia, the alliance’s chief said, ahead of EU-facilitated talks between the estranged western Balkan neighbors.
  • Tensions between Serbia and Kosovo flared this month when Pristina said it would oblige Serbs living in the north, who are backed by Belgrade and do not recognize Kosovo institutions, to start using car license plates issued in Pristina.
  • The global geopolitical situation shaped by the war in Ukraine is an opportunity for Argentina to continue adding support for its sovereignty claim over the British-run Falkland Islands.
  • Secretary for Falklands (Malvinas) Affairs Guillermo Carmona begun a tour of neighboring countries to bolster support for his country’s claim over the South Atlantic islands where Britain and Argentina fought a brief war 40 years ago.
  • In Europe, France’s river Loire has set new lows as drought dries up its tributaries, rocky beaches are emerging from Italy’s Lake Garda, and Serbs are wading across a vast stretch of the shrinking Danube.
  • Torrential rain slammed the west and north of New Zealand’s South Island for a third straight day, forcing hundreds to evacuate their homes and triggering road and school closures and land slips.
  • U.S. oil companies are working around a century-old shipping law to supply fuel to the U.S. East Coast, according to data from Refinitiv and oil trading sources, as high demand for gasoline and global disruptions in fuel markets sent prices higher.
  • The United States and Taiwan have agreed to start trade talks under a new initiative to reach agreements with “economically meaningful outcomes”, with a Taiwan official saying China’s “economic coercion” would also be discussed.

Latest updates on Russia – Ukraine Conflicts:

  • Ukrainian forces said they had beaten back a Russian attack in the southern region of Kherson, while the death toll from Russian shelling of Kharkiv city in Ukraine’s northeast climbed as the nearly six-month war grinds on.
  • Russia warned of the risk of a man-made nuclear disaster at the Zaporizhzhia nuclear power plant and accused Ukraine of planning a “provocation” there today during a visit by U.N. Secretary General Antonio Guterres.

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