Friday Briefing: From DXY to Latest FX Headlines; Aug 12, 2022

US Dollar Index Overview

  • The DXY strengthens on Friday and remains well supported above 105.50 mark.
  • It made intraday high at 105.66 and low at 105.09 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 105.89 to 105.10 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Key Headlines for the FX market:

  • World stocks headed for a fourth straight week of gains as investors scaled back views on how far U.S. interest rates and inflation can climb, while oil recouped some of the previous week’s losses.
  • The U.S. House of Representatives will vote today on a $430 billion bill to fight climate change and lower prescription drug prices, in what Democrats view as a major political win for President Joe Biden ahead of November’s midterm elections.
  • Biden plans to travel across the United States in the coming weeks to tout a series of legislative victories.
  • Without providing any proof, the secretary-general of Kenya’s governing party has said the country’s elections were rigged, fueling public anxiety as media houses significantly slowed down their unofficial tallies of the presidential vote.
  • British households faced new water usage restrictions, with parts of England likely to formally declare a drought as the government, environment officials and water companies meet to discuss the impact of prolonged hot and dry weather.
  • A European Union proposal to revive talks to salvage the 2015 Iran nuclear deal “can be acceptable if it provides assurances” on Tehran’s key demands, the state news agency IRNA said, quoting a senior Iranian diplomat.
  • The EU said on Monday it had put forward a “final” text following four days of indirect talks between the U.S. and Iranian officials in Vienna.
  • Hong Kong’s economy contracted 1.3% in the second quarter from the same period a year earlier, government data showed on Friday, following a weak performance in external trade during the period.

Latest updates on Russia – Ukraine Conflicts:

  • Russia and Ukraine accused each other of shelling Europe’s biggest nuclear power plant, compounding fears of a disaster as the U.N. chief said it should be made a demilitarized zone and Ukraine demanded that Russian forces withdraw from it.
  • The European Space Agency has begun preliminary technical discussions with Elon Musk’s SpaceX that could lead to the temporary use of its launchers after the Ukraine conflict blocked Western access to Russia’s Soyuz rockets.
  • Russia is considering buying the currencies of “friendly” countries such as China, India and Turkey to hold in its National Wealth Fund (NWF), having lost the ability to buy dollars or euros due to sanctions, the central bank said on Friday.

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