Friday Briefing: From DXY to Latest Russia – Ukraine Conflicts; June 17, 2022

US Dollar Index Overview

  • The DXY strengthens sharply on Friday and jumps back above 104.50 mark.
  • The intraday high is 104.63 and low at 103.83 mark.
  • A day Chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
  • Immediate hurdles are seen at 104.74 to 104.15 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 their worst week since markets’ pandemic meltdown in March 2020 as leading central banks doubled down on tighter policy in an effort to tame inflation, setting investors on edge about future economic growth.
  • Global central bankers, who shared the limelight for skirting a pandemic-driven depression with quick action two years ago, are now stumbling through the aftermath as they try to quell an inflation surge none predicted or have been able to forestall.
  • A Tesla shareholder sued the electric car maker, chief executive Elon Musk and its board, accusing them of neglecting to tackle complaints about workplace discrimination and harassment, and engendering a “toxic workplace culture”.
  • The World Trade Organization agreed the first change to global trading rules in years as well as a deal to boost the supply of COVID vaccines in a series of pledges that were heavy on compromise. Here’s what the conference has achieved.
  • Airlines expect the end of COVID testing requirements in North America to accelerate a rebound in transatlantic traffic – but soaring fares due to surging fuel costs and staffing shortages may slam the brakes on rising demand in the world’s largest international travel market.
  • Japan’s yen is at its weakest in decades and inflicting high costs of imported food and fuel on households and businesses, but also proving to be an unexpected tailwind for multinationals such as pharmaceutical giant Takeda.

Latest updates on Russia – Ukraine Conflicts:

  • The European Union’s executive Commission was expected to give its blessing to membership candidate status for Ukraine and two other former Soviet states, an historic eastward shift in Europe’s outlook brought about by Russia’s invasion.
  • Ukraine applied to join the EU just four days after Russian troops poured across its border in February. Four days later, so did Moldova and Georgia – two other states contending with separatist regions occupied by Russian troops.
  • The United States said it was aware of reports that a third U.S. citizen is missing after traveling to Ukraine and it had not yet asked Russia about two Americans reportedly captured after going to the country to fight Russian forces.
  • Russian-flagged ships have been carrying grain harvested in Ukraine last season and transported it to Syria, U.S. satellite imagery company Maxar said.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.


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