Monday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 04, 2022

US Dollar Index Overview

  • The DXY trades slightly lower and stabilizes below 105.00 mark.
  • It made intraday high at 105.16 and low at 104.81 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 105.21 to 104.81 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:

  • Investor morale in the euro zone fell this month to its lowest level since May 2020, pointing to an “inevitable” recession in the 19-country currency bloc, a survey showed.
  • The German government wants to enshrine possible rescue measures for energy companies such as Uniper in its energy security law and may end up acquiring a stake in the company as a last resort, sources told Reuters.
  • Fresh evacuation orders were issued for tens of thousands of Sydney residents after relentless rains triggered floods for the third time this year in some low-lying suburbs.
  • Biden may announce decision to cut Chinese tariffs this week – WSJ.
  • India is trying to “address volatility” in the Indian rupee that has tumbled to record lows against the dollar in recent weeks, a government official said on Monday, amid concerns of widening trade deficit and sell off by foreign investors.

Latest updates on Russia – Ukraine Conflicts:

  • Russian forces in Ukraine will focus on trying to seize all of the Donetsk region, having forced Ukrainian troops to withdraw from the last major city under their control in the neighboring Luhansk region, the governor of Luhansk said.
  • After abandoning an assault on Kyiv, the Ukrainian capital, during the early weeks of the war, Russia concentrated its military operation on the industrial Donbas heartland that comprises the Luhansk and Donetsk regions, where Moscow-backed separatist proxies have been fighting Ukraine since 2014.
  • Western envoys in China criticized Russia for its invasion of Ukraine, with the U.S. ambassador saying China should not spread Russian “propaganda”, in an unusual public forum in a country that has declined to condemn Moscow’s attack.
  • The president of Belarus — Kremlin leader Vladimir Putin’s closest ally — said his ex-Soviet state stood fully behind Russia in its military drive in Ukraine as part of its longstanding commitment to a “union state” with Moscow.
  • Turkey has halted a Russian-flagged cargo ship off its Black Sea coast and is investigating a Ukrainian claim that it was carrying stolen grain, a senior Turkish official said.

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