Monday Briefing: DXY Hovers around Fresh 4 – Week Low, What’s Next?; May 23, 2022
US Dollar Index Overview
- The DXY trades sharply lower on Monday and hits lowest level since April 26, 2022.
- The intraday high is 103.05 and low at 102.07 mark.
- A day Chart with triple EMA confirms up trend while H1 chart suggests down trend for the time being.
- Immediate hurdles are seen at 101.96 to 102.35 mark.
- A sustained close of either side on H1 chart requires for the further directions.
- Gold strengthens sharply on Monday and touches $1,865 mark in early U.S. session.
- Today pair made intraday high at $1,865 and low at $1,843 mark.
- A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1,867 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,852 on H1 chart will test further supports.
Key Headlines for the FX market:
- U.S. President Joe Biden said he would be willing to use force to defend Taiwan, in a series of critical comments about China he made in Tokyo that an aide said represented no change in U.S. policy on the self-ruled island – Reuters.
- Australia’s Labor Party leader, Anthony Albanese, was sworn in as the country’s 31st prime minister, promising to bring the country together after a fractious election campaign as he vowed to tackle climate change and inequality – Reuters.
- Beijing authorities extended work-from-home guidance for many of its 22 million residents to stem a persistent COVID-19 outbreak, while Shanghai deployed more testing and curbs to hold on to its hard-won ‘zero COVID’ status after two months of lockdown – Reuters.
- ECB President Christine Lagarde – The European Central Bank is likely to lift its deposit rate out of negative territory by the end of September and could raise it further if it sees inflation stabilising at 2%.
Latest updates on Russia – Ukraine Conflicts:
- Belarus’ Lukashenko tells Russia’s Putin we are concerned by moves to dismember Ukraine.
- Zelenskyy urges ‘maximum’ sanctions on Russia in Davos talk.
- Australian PM, UK’s johnson agreed in a call on Monday that it was important that the war in Ukraine did not embolden other countries to undermine global stability: Johnson’s office.
- I hope that at Lugano conference in July all countries will come up with offers for reconstruction in Ukraine: Zelenskyy.
- Ukraine President says we need complete withdrawal of businesses from Russia.
- Poland offers full support for Ukraine EU bid, reports AFP.
- Ukraine said it had held off the latest assault on an eastern city that has become the main target of Moscow’s offensive since Russian forces finally seized Mariupol last week – Reuters.
- A Ukrainian court sentenced a Russian soldier to life in prison for killing an unarmed civilian in the first war crimes trial arising from Russia’s invasion – Reuters.
Source: Times of India
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!