Monday Briefing: From DXY to Latest FX Headlines: Aug 15, 2022

US Dollar Index Overview

  • The DXY rises sharply on Monday and stabilizes above 106.00 mark.
  • It made intraday high at 106.34 and low at 105.55 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 106.48 to 105.90 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:

  • Global shares struggled to advance while investors digested news of an unexpected cut in Chinese interest rates as data pointed to faltering growth in the world’s second largest economy, sending oil prices nearly 2% lower.
  • U.S. stock index futures fell on Monday, taking cues from global markets, after weak economic data from China rekindled fears of an economic slowdown in the world’s second-largest economy.
  • Kenya’s Deputy President William Ruto led a tight presidential race against opposition leader Raila Odinga, official results reported by Kenyan media showed, as an announcement from electoral authorities on the winner appeared imminent.
  • China’s military said it carried out more exercises near Taiwan as a group of U.S. lawmakers visited the Chinese-claimed island and met President Tsai Ing-wen, in what Beijing said was an infringement of its sovereignty.
  • Iran will respond to the European Union’s “final” text by midnight, Iranian Foreign Minister Hossein Amirabdollahian said, calling on the United States to show flexibility to resolve three remaining issues to save a 2015 nuclear pact.
  • Drugmakers are launching new medicines at record-high prices this year, a Reuters analysis has found, highlighting their pricing power even as Congress moves to cut the $500 billion-plus annual bill for prescription drugs in the United States.
  • The Federal Reserve’s hawkish message on inflation registered quickly in U.S. housing markets this summer as mortgage rates shot up and home sales slowed.
  • Global ratings agency S&P Global on Monday slashed its rating on Sri Lankan bonds to ‘D’, representing default, following missed interest and principal payments.
  • Britain, the first country to approve a coronavirus vaccine in late 2020, has now also given the first green light to a variant-adapted shot that targets both the original and Omicron version of the virus.

Latest updates on Russia – Ukraine Conflicts:

  • Ukrainian forces reported heavy Russian shelling and attempts to advance on several towns in the eastern region of Donetsk that has become a key focus of the near six-month war, but said they had repelled many of the attacks.
  • Several major Wall Street banks have begun offering to facilitate trades in Russian debt in recent days, according to bank documents seen by Reuters, giving investors another chance to dispose of assets widely seen in the West as toxic.

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