Thursday Briefing: From DXY, Gold to Latest FX Headlines; Oct 06, 2022

US Dollar Index Overview

  • DXY rises on Thursday and stabilizes above 111.50 mark.
  • It made intraday high at 111.82 and low at 110.77 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 111.78 to 110.82 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 weakens sharply during European hours and stabilizes around $1,710 mark.
  • The pair made intraday high at $1,725 and Low at $1,710 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,724 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,706 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Global oil supply is set to tighten, intensifying concerns over soaring inflation after the OPEC+ group of nations announced its largest supply cut since 2020 ahead of European Union embargoes on Russian energy.
  • Ratings agency Fitch lowered the outlook for its credit rating for British government debt to ‘negative’ from ‘stable’, days after a similar move from rival Standard & Poor’s. Britain’s battered pound will be around 3.6% stronger in a year, according to a Reuters poll in which analysts were divided, however, on whether the currency would reach parity with the U.S. dollar by year-end.
  • President Joe Biden met with Florida Governor Ron DeSantis to assess the devastation from Hurricane Ian, and stressed the need for a united federal and state effort for the lengthy recovery ahead.
  • Ukraine said its forces have retaken more settlements in Kherson, one of four partially Russian-occupied regions that President Vladimir Putin formally incorporated into Russia in Europe’s biggest annexation since World War Two.
  • The European Union wants the 44 countries gathering for an inaugural summit in Prague of the European Political Community today to highlight Russia’s international isolation over Moscow’s war in Ukraine, the bloc’s top diplomat said.
  • North Korea fired two short-range ballistic missiles into the sea in the direction of Japan, as a U.S. aircraft carrier and allied warships held a drill that simulated shooting down one of the North’s missiles.
  • India is awaiting World Health Organization evidence of a link between an Indian cough syrup and the deaths of dozens of children in Gambia after the U.N. agency said the medicine may cause kidney damage.

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