Wednesday briefing: From DXY, Gold to Latest FX Headlines; Nov 02, 2022

US Dollar Index Overview

• DXY weakens on Wednesday and stabilizes above 111.00 mark.

• It made intraday high at 111.50 and low at 111.00 mark.

• A day Chart and H1 chart with triple EMA suggest up trend for the time being.

• Immediate hurdles are seen at 111.65 to 110.67 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 marginally higher ahead of U.S. FOMC interest Rate decision and remains well supported above $1,650 mark.

• The pair made intraday high at $1,658 and Low at $1,646 mark.

• A day chart is down and H1 chart with triple EMA suggests up trend for the time being.

• A sustained close above $1,660 on H1 chart requires for the upside rally.

• Alternatively, a consistent close below $1,647 on H1 chart will test further supports.

Key Headlines for the FX market:

• North Korea fired at least 23 missiles into the sea, including one that landed less than 60 km off South Korea‘s coast, which the South’s President Yoon Suk-yeol described as “territorial encroachment”. It was the first time a ballistic missile had landed near the Souths waters since the peninsula was divided in 1945, and the most missiles fired by the North in a single day.

• Russia said it would resume its participation in a deal to free up vital grain exports from Ukraine after suspending it over the weekend in a move that had threatened to exacerbate hunger across the world.

• Brazilian President Jair Bolsonaro did not concede defeat in his first public remarks since losing Sundays election, saying protests by his supporters were the fruit of “indignation and a sense of injustice” over the vote. However, he stopped short of contesting the election result.

• Israels former premier Benjamin Netanyahu was poised for a dramatic return to power, claiming a “huge vote of confidence” from voters and declaring that his right-wing camp was on the cusp of a resounding election win.

• The man charged with breaking into House Speaker Nancy Pelosis home and clubbing her husband with a hammer later told police he was on a “suicide mission” and had planned to target more politicians, according to court documents prosecutors filed. Former President Barack Obama warned that “more people are going to get hurt” unless the political climate changes.

• The Federal Reserve is expected to raise interest rates by three-quarters of a percentage point for the fourth straight time today, but open the door to a future slowdown in its policy tightening as it balances the risk of stubbornly high inflation against the economic strains of tighter credit.

• The Bank of Canada has not ruled out another oversized interest rate hike to fight sky-high inflation, governor Tiff Macklem said, acknowledging Canadians feel “ripped off” by fast-rising prices.

• Europe needs its industrial companies to save energy amid soaring costs and shrinking supplies, and they are delivering – demand for natural gas and electricity both fell in the past quarter.