Friday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 08, 2022

US Dollar Index Overview

  • The DXY exhibits range bound movement and consolidates around 107.00 mark.
  • It made intraday high at 107.13 and low at 106.71 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 107.17 to 106.70 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:

  • Boris Johnson will announce his resignation as British prime minister today after he was abandoned by ministers and his Conservative Party’s lawmakers who said he was no longer fit to govern.
  • Ukrainian forces raised their national flag on a recaptured Black Sea island in a symbol of defiance against Moscow, but Russian forces consolidated gains in eastern Ukraine and probed the defenses of potential new targets.
  • Millions in Shanghai queued up for a third day of mass COVID testing as authorities in several Chinese cities scrambled to stamp out new outbreaks that have rekindled worries about growth in the world’s second-largest economy.
  • The global cost-of-living crisis is pushing an additional 71 million people in the world’s poorest countries into extreme poverty, a new report published by the U.N. Development Programme has warned.
  • Chipmakers revived stock markets, helping to sooth investor worries over a potentially rapid recession because of looming rate hikes, while the euro struggled near a 20 – year parity with the safe-haven dollar.
  • The European Parliament backed EU rules labeling investments in gas and nuclear power plants as climate-friendly, throwing out an attempt to block the law that has exposed deep rifts between countries over how to fight climate change.

Latest updates on Russia – Ukraine Conflicts:

  • Russian Foreign Minister Sergei Lavrov was on the Indonesian island of Bali preparing for a G20 gathering that will be his first face-to-face meeting with the fiercest critics of his country’s invasion of Ukraine.
  • Ukraine hoists flag on recaptured Black Sea island.
  • Russia consolidates gains in eastern Ukraine.

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