Thursday Briefing: From DXY, Gold to Latest FX Headlines; Dec 01, 2022

US Dollar Index Overview

  • DXY weakens sharply in U.S. session as U.S. released ISM PMI data as well as Core PCE Price Index data with negative numbers but U.S. personal Income and spending data meets the expectations.
  • It made intraday high at 105.89 and low at 104.66 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 105.65 to 104.68 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 spikes up on Thursday as U.S. released majority key economic data with Negative numbers.
  • The pair made intraday high at $1,804 and Low at $1,772 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,802 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,789 on H1 chart will test further supports.

Key Headlines for the FX market:

  • A rally in U.S. stocks and bonds powered ahead after a speech by Federal Reserve Chairman Jerome Powell, but some investors believe a looming recession could cap gains in both asset classes.
  • China is set to announce in coming days an easing of its COVID-19 quarantine protocols and a reduction in mass testing, sources told Reuters, a marked shift in policy after anger over the world’s toughest curbs fueled widespread protests.
  • Russian forces tried to advance in eastern Ukraine and trained tank, mortar and artillery fire on Kherson in the south, the Ukrainian military said, as Western allies sought to buttress Ukraine and its neighbors against Moscow.
  • Spain has stepped up security at public and diplomatic buildings after a spate of letter bombs, including one sent to Prime Minister Pedro Sanchez and another to the Ukrainian embassy in Madrid, where an official suffered minor injuries.
  • The world must cooperate to tackle the greatest challenges of climate change, terrorism, and pandemics, Prime Minister Narendra Modi said as India began its year-long presidency of the G20.
  • A federal appeals court declined to put on hold a Texas judge’s ruling that said President Joe Biden’s plan to cancel hundreds of billions of dollars in student loan debt was unlawful.
  • Biden and French President Emmanuel Macron will celebrate more than 200 years of U.S.-French relations today but simmering in the background is a dispute over new American subsidies that has riled Europe
  • The downturn in manufacturing activity across the euro zone eased in November, according to a survey which suggests while the bloc’s factories still face a harsh winter it may not be as bad as initially feared.
  • Bank of Korea Governor Rhee Chang-yong said he was ready to readjust the pace of tightening monetary policy.

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