Friday Briefing: From DXY to Latest FX Headlines; Aug 26, 2022

US Dollar Index Overview

  • The DXY depreciates on Friday and slips back below 108.00 mark.
  • It made intraday high at 108.75 and low at 107.92 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 108.51 to 107.74 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:

  • For nearly 70 years an imagined line running down the Taiwan Strait between Taiwan and China has helped keep the peace, but the so-called median line is looking increasingly meaningless as China’s modernized navy asserts its strength. Recent visits by guests from the United States have reinforced Taiwan’s determination to defend itself, President Tsai Ing-wen said as she met the latest U.S. lawmaker to arrive on the island.
  • Japan will spend $1.83 million on a state funeral for slain former leader Shinzo Abe, the government said, despite growing opposition from a public angered by revelations of the ruling party’s ties to the Unification Church.
  • President Joe Biden had harsh words to describe Trump-allied Republicans, as he held his first political rally in the run-up to November elections, accusing the group of embracing violence and hatred, and saying they edged toward “semi-fascism” at an earlier fund-raising stop.
  • No more ironing, limited oven use and showering at work – Europeans are trying to keep their energy use down but the bills keep climbing. As wholesale gas and electricity prices surge, millions of people in Europe are now spending a record amount of their income on energy – with British energy bills set to jump 80% from October.
  • If ‘raise and hold’ sounds like a poker strategy, that may in fact sum up the all-in approach to fighting inflation that Federal Reserve Chair Jerome Powell is expected to lay out in a highly anticipated speech to the Jackson Hole central banking conference.

Latest updates on Russia – Ukraine Conflicts:

  • The world narrowly escaped a radiation disaster when electricity to Europe’s largest nuclear power plant was cut for hours, Ukraine’s president said, urging international bodies to act faster to force Russian troops to vacate the site.

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