Monday Briefing: From DXY, Gold to Russia – Ukraine Conflicts; June 06, 2022
US Dollar Index Overview
- The DXY recovers slightly from previous losses and hovers around 102.00 mark.
- The intraday high is 102.19 and low at 101.85 mark.
- A day Chart with triple EMA suggests up trend while H1 chart suggests bearish trend for the time being.
- Immediate hurdles are seen at 102.22 to 101.85 mark.
- A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.
- Gold exhibits range bound movement and remains well supported in between $1,850 to $1,860 mark.
- The pair made intraday high at $1,857 and low at $1,850 mark.
- A day chart and H1 chart with triple EMA suggest down trend for the time being.
- A sustained close above $1,858 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,848 on H1 chart will test further supports. U.S. economic Calendar will remain empty for the day.
Key Headlines for the FX market:
- Prime Minister Boris Johnson will face a confidence vote later today, after a growing number of lawmakers in the governing Conservative Party questioned the British leader’s flagging authority over the ‘partygate’ scandal. We look at who could replace Johnson if he is ousted.
- South Korea and the United States said they fired eight surface-to-surface missiles off South Korea’s east coast, responding to a barrage of short-range ballistic missiles launched by North Korea.
- Power demand in Texas is set to break the all-time record this week, far ahead of the hottest days of summer, testing of the resilience of the state’s power grid after issues earlier this year and last year’s days-long blackout during a deep freeze.
- Oil prices hit $120 a barrel after Saudi Arabia raised crude prices for July and amid doubts that an increased OPEC+ monthly output target will help ease tight supply.
- Italian oil company Eni and Spain’s Repsol could begin shipping Venezuelan oil to Europe as soon as next month to make up for Russian crude, people familiar with the matter said, resuming oil-for-debt swaps halted two years ago when Washington stepped up sanctions on Venezuela.
- President Joe Biden will declare a 24-month tariff exemption for solar panels from four Southeast Asian nations after an investigation froze imports and stalled projects in the United States.
- China’s Ant Group, a financial technology giant controlled by billionaire Jack Ma, said it has launched a digital wholesale bank incorporated in Singapore, dubbed ANEXT Bank. The move marks one of Ant’s biggest overseas pushes since its $37 billion IPO was derailed by Chinese regulators in late 2020.
Latest updates on Russia – Ukraine Conflicts:
- Intense fighting between Ukrainian and Russian forces raged in the streets of the industrial city of Sievierodonetsk in a pivotal battle for advantage in eastern Ukraine, the provincial governor said.
- The Ukrainian defenders had over the weekend regained control over about half the city just as the Russians appeared on the verge of victory.
- A Russian general was killed in eastern Ukraine, a Russian state media journalist said, adding to the string of high-ranking military casualties sustained by Moscow.
- Britain will supply Ukraine with multiple-launch rocket systems that can strike targets up to 80 km away, in a move that was coordinated with the United States.
- Russia should not close the U.S. embassy despite the crisis triggered by the war in Ukraine because the world’s two biggest nuclear powers must continue to talk, the U.S. ambassador to Moscow was quoted as saying.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!