Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Nov 30, 2022

US Dollar Index Overview

  • DXY continues to trade in rigid boundaries and breaks key resistance at 106.90 mark.
  • It made intraday high at 106.91 and low at 106.29 mark.
  • A day Chart is down and H1 chart with triple EMA suggests slightly up trend for the time being.
  • Immediate hurdles are seen at 107.30 to 106.37 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 during U.S. session and hovers around $1,750 mark.
  • The pair made intraday high at $1,764 and Low at $1,747 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,762 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,747 on H1 chart will test further supports.

Key Headlines for the FX market:

  • People in the Chinese city of Guangzhou clashed with riot police in hazmat suits as authorities investigated more of those who have taken part in a string of protests against the world’s toughest COVID-19 restrictions.
  • Ukrainian President Volodymyr Zelenskiy said Russian forces were trying to advance in the northeast and east and “planning something” in the south, while NATO sought to reassure other countries who fear destabilization from Moscow.
  • More than 1,000 members of a Hindu group close to India’s ruling party vowed to go ahead with a protest march in support of construction of a port by the Adani Group which Christian protesters want to block for environmental reasons.
  • World equity markets rallied and the focus turned to Jerome Powell, who speaks later in the day in what will be the U.S. Federal Reserve chief’s last opportunity to steer sentiment ahead of the Fed’s December meeting.
  • Brent oil prices will hold above the $100 level for the rest of 2022 as an impending EU ban on Russian oil sparks uncertainty over supply, but will tick lower next year as economic concerns prevail, a Reuters poll showed.
  • Euro zone inflation eased far more than expected in November, raising hopes that sky-high price growth is now past its peak and bolstering the case for a slowdown in European Central Bank rate hikes next month.
  • Italy’s cabinet undersecretary Alessio Butti said on Wednesday that the government has no plans to launch a 100% bid on Telecom Italia (TIM).
  • German Economy Minister Robert Habeck on Wednesday announced his country’s exit from the Energy Charter Treaty, as growing dissatisfaction with the agreement in Europe casts doubt over its future.
  • U.S. stock index futures edged higher on Wednesday, with those of the Nasdaq rising the most on gains in Tesla shares, while investors treaded cautiously ahead of comments from Federal Reserve Chair Jerome Powell later in day.
  • Bitcoin is being artificially propped up and should not be legitimised by regulators or financial companies as it heads for “irrelevance”, the European Central Bank said on Wednesday.
  • The European Commission will make a proposal to redesign the European Union’s electricity market by the end of March next year, the bloc’s head of energy policy said on Wednesday.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
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