Thursday Briefing: From DXY, Gold to Latest FX Headlines; Sept 29, 2022

US Dollar Index Overview

  • The DXY spikes down on Thursday and stabilizes below 113.00 mark.
  • It made intraday high at 113.78 and low at 112.70 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 113.65 to 112.64 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 recovers sharply from previous losses and jumps back above $1,650 mark.
  • The pair made intraday high at $1,659 and Low at $1,641 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,658 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:

  • President Vladimir Putin will sign formal documents tomorrow proclaiming Russia’s annexation of four Ukrainian regions, as Moscow rushes to lock in territorial claims that the Ukrainian army is threatening to reverse on the battlefield.
  • The United States will in coming days impose economic costs on Moscow as Biden administration officials look to the finance and energy sectors for future sanctions action.
  • EU leaders will discuss next week what the bloc has denounced as sabotage on the subsea Nord Stream gas pipelines, an EU official said, adding that the incident had changed the nature of the conflict in Ukraine fundamentally.
  • Russian IT professionals are moving abroad en masse to avoid military mobilization, industry leaders have warned, despite official assurances that key technology workers will not be called up to fight in Ukraine.
  • Hurricane Ian, one of the mightiest to hit the U.S. mainland in recent years, flooded communities and left more than two million homes and businesses without power as it battered Florida’s Gulf Coast with howling winds, torrential rains and raging surf.
  • The Senate edged toward passage of a temporary government funding bill to avert a partial government shutdown, with leaders of both parties signaling support for the measure and lawmakers eager to return to the campaign trail.
  • U.S. Vice President Kamala Harris said North Korea is a country with a “brutal dictatorship”, an illegal arms program and rampant human rights violations, issuing unusually strong criticism during a visit to the inter-Korean border.
  • China signaled no let-up in its combative approach to foreign policy in a third term for Xi Jinping as leader despite criticism from many Western diplomats that the so-called Wolf Warrior stance has been counterproductive.
  • British Prime Minister Liz Truss broke her silence following nearly a week of chaos in financial markets triggered by her plans for tax cuts, saying she was willing to take “controversial” decisions to reignite growth.
  • China’s central bank has asked major state-owned banks to be prepared to sell dollars for the local currency in offshore markets as it steps up efforts to stem the yuan’s descent, four sources with knowledge of the matter said.

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