Tuesday Briefing: From DXY, Gold to Latest FX Headlines; Sept 27, 2022

US Dollar Index Overview

  • The DXY moves in narrow range and remains well supported above 113.50 mark.
  • It made intraday high at 113.90 and low at 113.61 mark.
  • A day Chart and H1 chart with triple EMA up trend for the time being.
  • Immediate hurdles are seen at 113.89 to 113.22 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 remains volatile ahead of U.S. session and remains well supported above $1,630 mark.
  • The pair made intraday high at $1,649 and Low at $1,626 mark.
  • A day chart and H1 chart with triple EMA suggest down trend for the time being.
  • A sustained close above $1,638 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,632 on H1 chart will test further supports.

Key Headlines for the FX market:

  • European countries raced to investigate unexplained leaks in two Russian gas pipelines running under the Baltic Sea near Sweden and Denmark, infrastructure at the heart of an energy crisis since Russia’s invasion of Ukraine.
  • Ukrainians who help Russian-backed referendums to annexe large swaths of the country will face treason charges and at least five years in jail, Ukraine’s presidential adviser said, as voting in four regions entered its last day.
  • One of President Vladimir Putin’s allies explicitly raised the specter of a nuclear strike on Ukraine, saying that the U.S.-led military alliance would still stay out of the conflict for fear of a nuclear apocalypse.
  • Kazakhstan is struggling to accommodate tens of thousands of Russians who have fled their homeland since Moscow announced a military mobilization last week, officials say, but the Almaty government has no plans to close its border.
  • Residents across Florida scrambled to place sandbags around their homes and stockpile emergency supplies, emptying store shelves as Hurricane Ian spun toward the state carrying high winds, torrential rains and a powerful storm surge.
  • The Senate will take an initial vote on a stopgap spending measure today to keep federal agencies running past the end of this week, while Congress continues to negotiate bills to fund the government through the next fiscal year.
  • Vietnam closed airports, announced curfews and urged thousands more people to evacuate as intensifying Typhoon Noru barreled towards the country, two days after causing at least eight deaths and widespread flooding in the Philippines.
  • The British pound was higher against the dollar, a day after hitting a record low, as the Bank of England and UK Treasury attempted to soothe market concerns after the government announced a raft of unfunded tax cuts.
  • Investors say Britain’s new government has dealt such a blow to the UK’s standing with markets that rebuilding confidence could take more than emergency interest rate hikes.
  • The Dow Jones Industrial Average, the oldest of Wall Street’s three main stock indexes, dropped 1.1%, extending the decline from its January peak to more than 20%, meeting a common definition for a bear market.
  • Under a new government, Australia is shaping up to be the next big market for offshore wind developers, attracting interest from the likes of Shell, Denmark’s Orsted and Norway’s Equinor. But the industry, starting from scratch Down Under, faces a slew of challenges.
  • India’s Adani Group will invest more than $100 billion over the next decade, most of it in the energy transition business, its Chairman Gautam Adani said on Tuesday, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan.

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