Friday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 01, 2022

US Dollar Index Overview

  • The DXY spikes up sharply in early U.S. hours and stabilizes around 105.30 mark.
  • The intraday high is 105.34 and low at 104.75 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 105.55 to 104.89 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:

  • The specter of an emerging Arab-Israeli bloc that could tilt the Middle East balance of power further away from Iran is driving the Islamic Republic to pursue nuclear talks with world powers with renewed determination, officials and analysts said.
  • The first in-person Canada Day celebrations in three years will include a huge police presence and street closures throughout downtown Ottawa to prevent anti-government “freedom” protesters from disrupting the festivities.
  • North Korea claimed that the country’s first COVID-19 outbreak began with patients touching “alien things” near the border with South Korea, apparently shifting blame to its neighbor for the wave of infections in the isolated country.
  • Euro zone inflation hit yet another record high in June as price pressures broadened, and its peak could still be months away, firming the case for rapid European Central Bank rate hikes starting this month.
  • New U.S. data for May showed little immediate relief from the record pace of inflation pushing the Federal Reserve toward another oversized interest rate increase next month, but it did add to a developing sense that the worst may be over.
  • India introduced export duties on gasoil, gasoline and jet fuel to help maintain domestic supplies, while also imposing a windfall tax on oil producers who have benefited from higher global crude oil prices.

Latest updates on Russia – Ukraine Conflicts:

  • Russia rained missiles near Ukraine’s Black Sea port of Odesa, hitting an apartment building and a resort and killing at least 19 people, Ukrainian officials said, hours after Russian troops were driven off the nearby Snake Island.
  • One section of a nine-storey apartment block was completely destroyed by a missile that struck at 1:00 a.m. The walls and windows of a neighboring, 14-storey apartment block had also been damaged by the blast wave.
  • President Vladimir Putin has raised the stakes in an economic war with the West by signing a decree to seize full control of the Sakhalin-2 gas and oil project in Russia’s far east, a move that could force out Shell and Japanese investors.
  • Although Western nations have issued rounds of sanctions against Russia, a Reuters review of key companies, executives and investors in Russia’s defense industry shows a number of players are yet to pay a price.
  • Russia said it had summoned the British ambassador to voice a strong protest against “offensive” British statements, including about alleged Russian threats to use nuclear weapons.

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