Monday Briefing: From DXY, Gold to Latest Russia – Ukraine Conflicts; June 13, 2022

US Dollar Index Overview

    • The DXY starts a new week on appositive note and hovers around key resistance at 104.85 mark.
    • The intraday high is 104.84 and low at 104.41 mark.
    • A day Chart and H1 chart with triple EMA suggest bullish trend for the time being.
    • Immediate hurdles are seen at 104.85 to 104.40 mark.
    • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis:
Gold (XAU/USD):

      • Gold erases last week ‘s gain and remains well supported below $1,860 mark.
      • The pair made intraday high at $1,877 and low at $1,852 mark.
      • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
      • A sustained close above $1,878 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:

      • In a potential breakthrough toward the first significant new U.S. gun law in decades, a bipartisan group of senators announced an agreement on a framework for a firearms safety bill with enough Republican support to advance in the narrowly divided Senate.
      • Britain will set out plans today to override some of the post-Brexit trade rules for Northern Ireland, changes that will inflame tensions with the European Union but were dubbed mere “bureaucratic simplifications” by Prime Minister Boris Johnson.
      • Cryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to “extreme market conditions”, the company said, in the latest sign of pressure in the crypto industry.
      • The value of the cryptocurrency market fell below $1 trillion for the first time since January 2021, according to data site CoinMarketCap.
      • Futures tracking the tech-heavy Nasdaq tumbled nearly 3% as a widely watched part of the Treasury yield curve inverted on growing fears that aggressive interest rate hikes by the Federal Reserve will tip the economy into recession.
      • Tokyo is concerned about sharp falls in the yen currency and stands ready to “respond appropriately” if needed, Japan’s top government spokesperson said, issuing a fresh warning to markets.
      • Britain’s economy unexpectedly shrank in April, official figures showed, adding to fears of a sharp slowdown just three days before the Bank of England announces the scale of its latest interest rate response to the surge in inflation.

Latest updates on Russia – Ukraine Conflicts:

      • Russian forces swarmed into the eastern Ukrainian city of Sievierodonetsk and pounded a zone where hundreds of civilians were sheltering, a Ukrainian official said.
      • Ukraine’s central bank said the situation in the war with Russia will determine whether its key interest rate can be cut from the current level of 25% or whether further hikes will be necessary.
      • Ukraine has issued increasingly urgent calls for more Western weapons to help defend Sievierodonetsk, which Kyiv says could hold the key to the outcome of the battle for control of the eastern Donbas region and the future course of the war.
      • Ukraine’s allies are divided over the endgame.
      • The Wikimedia Foundation, which owns Wikipedia, has filed an appeal against a Moscow court decision demanding that it remove information related to the Russian invasion of Ukraine, arguing that people have a right to know the facts of the war.

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