Wednesday Briefing: From DXY, Gold to Latest FX Headlines; Sept 28, 2022

US Dollar Index Overview

  • The DXY weakens on Wednesday and trading around 114.00 mark.
  • It made intraday high at 114.79 and low at 113.40 mark.
  • A day Chart and H1 chart with triple EMA up trend for the time being.
  • Immediate hurdles are seen at 114.79 to 113.76 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 spikes up sharply on Wednesday and jumps back above $1,650 mark.
  • The pair made intraday high at $1,653 and Low at $1,616 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,652 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,638 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Any deliberate disruption to the EU’s energy infrastructure would meet a “robust and united response”, its top diplomat was quoted as saying after several states said two Russian gas pipelines to Europe were attacked.
  • As gas continued to spew into the Baltic Sea, it remained far from clear who might be behind the leaks or any foul play, if proven, on the Nord Stream pipelines that Russia and European partners spent billions of dollars building.
  • Russian-installed officials in four occupied regions of Ukraine reported huge majorities of votes in favor of joining Russia as the United States planned a U.N. resolution condemning the referendums as shams and Russia remained defiant.
  • Entire villages are emptying out as Ukrainians flee from Russian annexation, while on Russia’s borders there is desperation as Russian men attempt to escape President Vladimir Putin’s military draft.
  • Putin’s latest warning that he is ready to use nuclear weapons to defend Russia amid the war in Ukraine has made a troubling question much more urgent.
  • North Korea fired two short-range ballistic missiles off its east coast, the South’s military said, just a day before U.S. Vice President Kamala Harris is set to arrive in Seoul.
  • Iranian riot police deployed in Tehran’s main squares to confront people chanting “death to the dictator” as nationwide protests over the death of young Iranian woman Mahsa Amini in police custody piled pressure on authorities.
  • The Bank of England sought to quell a fire-storm in the British bond market, saying it would buy as much government debt as needed to restore financial stability after chaos triggered by the new government’s fiscal policy. The pound whipsawed after the BoE stepped in.
  • The European Central Bank may need to raise interest rates by another 75 basis points at its October meeting and move again in December to a level that no longer stimulates the economy, policymakers said.
  • A decade ago, Bank of Japan Governor Haruhiko Kuroda won praise for ending a debilitating spike in the yen with his “bazooka” stimulus. Now the currency’s slide is putting him under siege and forcing him to reluctantly concede that once he leaves next April, the bank may start relaxing its policy that caps bond yields.

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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