Tuesday Briefing: From DXY, Gold to Latest FX headlines; Nov 29, 2022

US Dollar Index Overview

  • DXY enjoys roller coaster movement and stabilizes above 106.50 mark.
  • It made intraday high at 106.80 and low at 106.05 mark.
  • A day Chart and H1 chart with triple EMA suggest down trend for the time being.
  • Immediate hurdles are seen at 106.82 to 105.98 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 trades slightly lower and hovers around $1,750 mark.
  • The pair made intraday high at $1,759 and Low at $1,740 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,762 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,748 on H1 chart will test further supports.
Supports
Resistances
$1,747
$1,757
$1,742
$1,764
$1,737
$1,770
$1,731
$1,776
$1,726
$1,782

 
Key Headlines for the FX market:

  • Chinese authorities have begun inquiries into some of the people who gathered at weekend protests against COVID curbs, people who were at the Beijing demonstrations told Reuters, as police remained out in numbers on the city’s streets.
  • A communications line created between the militaries of the United States and Russia at the start of Moscow’s war against Ukraine has been used only once so far, a U.S. official told Reuters.
  • Singapore’s parliament decriminalized sex between men, but, in a blow to the LGBT community, also amended the constitution to prevent court challenges that in other countries have led to the legalisation of same-sex marriage.
  • The U.S. Supreme Court is set to consider whether President Joe Biden’s administration can implement guidelines – challenged by two conservative-leaning states – shifting immigration enforcement toward public safety threats in a case testing executive branch power to set enforcement priorities.
  • Moscow has sent India a list of more than 500 products for potential delivery including parts for cars, aircraft and trains, as sanctions squeeze Russia’s ability to keep vital industries running. Meanwhile, the yuan is the new dollar as the currency sweeps into Russia’s markets and trade flows.
  • Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after QatarEnergy and ConocoPhillips signed two sales and purchase agreements for its export covering at least a 15-year period.
  • U.S. cryptocurrency lender BlockFi will make its first appearance in U.S. bankruptcy court after filing for Chapter 11 protection. Read our weekly analysis of the wild world of cryptocurrencies.
  • The U.S. State Department has approved a second significant arms sale to Finland within a month, helping Russia’s Nordic neighbour in its bid to strengthen its defences due to the war in Ukraine, Finland and the United States said.
  • U.S. stocks will end next year up around 6% after a rough start to 2023 as higher interest rates take their toll on the U.S. economy, according to a Reuters poll of strategists on Tuesday.
  • The Omicron variant of COVID-19 could slow global economic growth by exacerbating supply chain problems and depressing demand, U.S. Treasury Secretary Janet Yellen told the Reuters Next conference on Thursday.
  • U.S. stock index futures edged higher on Tuesday, with Tesla leading gains among beaten-down growth stocks amid hopes that the recent protests in China could lead to a quicker easing of strict COVID-19 curbs in the country.

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