Friday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 29, 2022

US Dollar Index Overview

  • The DXY strengthens sharply after U.S. Personal Income & Spending data and jumps back above 106.50 mark.
  • It made intraday high at 106.54 and low at 105.54 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 106.65 to 105.61 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:

  • Rescuers searched overflowing rivers and through piles of debris to try to find people missing after landslides and floods triggered by heavy rains in Iran, officials said.
  • Britain’s High Court rejected Nicolas Maduro’s latest efforts to get control of more than $1 billion of Venezuela’s gold reserves stored in the Bank of England’s underground vaults in London.
  • The World Bank does not plan to offer new financing to Sri Lanka, which is battling its worst economic crisis in decades, until the Indian Ocean nation has an adequate macroeconomic policy framework in place, the lender said.
  • Biden’s campaign trail promise to increase taxes on corporations and the wealthy as part of a battle against glaring income inequality in the United States got an unexpected boost.
  • The northwestern United States is enduring an extreme heat wave for the second straight summer. The National Weather Service issued an excessive heat warning for northwest Oregon, with forecasts in some inland areas running as high as 110°F (43°C).
  • China’s factory activity likely expanded at the fastest pace in a year in July, a Reuters poll showed, as production in COVID-hit manufacturing hubs resumed after emerging from lockdowns while supply chain disruptions eased.
  • MSCI World index up 0.3%; nearly 6% for the month.
  • Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar dipped as traders await fresh U.S. data for clues to the outlook for rates.
  • The yield on benchmark 10-year Treasury notes recovered slightly from its overnight lows to trade at 2.7029% while the two-year note’s yield, which typically moves in step with interest-rate expectations, was at 2.8703%.

Latest updates on Russia – Ukraine Conflicts:

  • Russia has tasked mercenaries to hold sections of the frontline in Ukraine in a sign it is running short of combat infantry, Britain’s Ministry of Defence said, as Kyiv steps up a counter-offensive in the south.
  • Dozens of Ukrainian prisoners of war appeared to have been killed in a missile strike on Friday, with Moscow and Kyiv accusing each other of carrying out the attack.
  • At least five people were killed and seven wounded in a Russian missile strike on the southeastern Ukrainian city of Mykolaiv on Friday, the regional governor said.

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