Edge-Forex Forex

4 Global Market Updates- 7 September, 2022

In this article, we have covered the highlights of global market news about the EUR/GBP, XAG/USDEUR/USD and USD/CNH.
EUR/GBP slowly rebounds up around the mid-0.8600s after falling to a one-week low.

On Wednesday, new bids are received on the EUR/GBP cross, which ends a two-day losing run and drops to a one-week low at the 0.8565 area hit the day before. In the first half of the European trading session, the cross continues to rise during the day and reaches a new daily high in the range of 0.8630 and 0.8635.

The relative success of the common currency over the pound comes despite mostly better-than-expected economic data from the Eurozone. In contrast to the 0.4% drop predicted, German Industrial Production declined by 0.3% in July, according to official figures published earlier this Wednesday. Additionally, the initial estimate for the second quarter of 2022’s GDP for the Eurozone was revised upward to reflect growth of 0.8% rather than 0.6%.

The Nord Stream 1 gas pipeline is essentially shut down, according to Russian President Vladimir Putin, who also said that we may start the Nord Stream 2 gas pipeline if required. This provides extra support for the single currency and, to a certain degree, helps allay worries of a severe energy crisis in Europe. This gives the EUR/GBP cross an extra boost, coupled with the development of some selling surrounding the British pound.

Silver Price Analysis: XAG/USD retests declining channel resistance at $18.25.

Near the weekly low hit earlier this Wednesday, or about $17.85, silver draws some dip-buying. It then recovers, resetting the daily high in the early hours of the European session. The white metal is now trading at $18.20–$18.25, which is still significantly below the one-week peak reached the day before.


The upper limit of a channel that slopes downward from the August monthly swing high serves as a barrier for the XAG/USD at the moment. For optimistic traders, sustained strength beyond will serve as a new trigger and open the door to potentially significant upside in the near future.

The XAG/USD can then pick up speed in the direction of the next important resistance, which is just in front of the $19.00 round number. The 4-hour chart’s 100-period SMA and the aforementioned handle, if convincingly cleared, would indicate that spot prices have established a bottom around the $17.55 region.

EUR/USD regains its grin and rises beyond 0.9900.

The euro manages to restore some composure, which motivates Wednesday’s return of EUR/USD to the region above the 0.9900 level.

Despite the ongoing buy bias surrounding the dollar, EUR/USD trades with moderate gains and avoids two consecutive daily retracements.


In fact, the US Dollar Index (DXY) hit fresh cycle highs earlier in the session around 110.70, albeit it quickly lost some of its lustre and supported the rebound in the pair.

The current price increase coincides with the German 10y bund yields losing some of their upward impetus after reaching previous levels at 1.65%.

In the next hours, the European currency is anticipated to trade in a cautious manner ahead of the crucial ECB monetary policy meeting on Thursday. Investors are still leaning for a 75 basis point rate increase on this.

USD/CNH continues to go for the barrier of 7,000 – UOB

Lee Sue Ann and Quek Ser Leang, FX Strategists at UOB Group, say that USD/CNH may now attempt to overcome the crucial 7.0000 barrier in the near future.

“The robust spike in USD that quickly knocked out a few major resistance levels came as a surprise,” said the 24-hour outlook (we were expecting sideway-trading). The level to pay attention to is definitely around 7.0000, and the impulsive surge is likely to continue. Although a breach of this level is possible, given the extreme overbought circumstances, it’s possible that USD won’t be able to retain its position above this level. Support may be found in 6.9620 and 6.9500.

Within the next three weeks: “For the last three weeks, we have predicted a stronger USD. While additional USD gain is possible, we said in our most recent narrative from yesterday that the USD must finish above 6.9600 before a rise over 7.0000 can be anticipated. The ensuing rapid rally, which saw the USD soar to 6.9816 before closing at 6.9712, was unexpected. From here, everyone is focused on 7.0000. When this level is broken, attention will turn to level 7.0500. As long as the USD does not go below the “strong support” level of 6.9300 (it was at 6.9070 yesterday), the USD’s strength is considered to remain intact.

Please click here for the Market News Updates from 6 September 2022.