Monday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 11, 2022

US Dollar Index Overview

  • The DXY appreciates on Monday and hits highest level since Oct 2002.
  • It made intraday high at 108.14 and low at 107.07 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 108.15 to 107.48 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:

  • The world’s largest crypto exchange, Binance, continued to process trades by clients in Iran despite U.S. sanctions and a company ban on doing business there.
  • Shares in Twitter fell about 6% in premarket trading as a legal tussle between Elon Musk and the social media company is expected to take center stage after the world’s richest person walked away from the $44 billion deal.
  • Sri Lanka’s President Gotabaya Rajapaksa and the entire cabinet will resign to make way for a unity government, the prime minister’s office said.
  • The bond market is pricing in a sharp deceleration in inflation over the next year, as aggressive tightening by the Federal Reserve to counter the steepest surge in prices in a generation ramps up recession concerns.
  • With flags at half-mast, Japan mourned the killing of former premier Shinzo Abe even as the ruling party that he had dominated secured an election win that gives current Prime Minister Fumio Kishida the chance to cement his own power.
  • Tensions between China and the United States, and the withdrawal of the remote Pacific island nation of Kiribati, have overshadowed the Pacific Islands Forum as leaders arrived in Fiji for the first in-person summit in three years.
  • British Foreign Secretary Liz Truss entered the race to replace Boris Johnson as prime minister, taking the number of candidates in an increasingly bitter and unpredictable contest to 11.
  • Biden will host an event at the White House today to tout the first major federal gun safety bill in three decades, which he signed into law in June.

Latest updates on Russia – Ukraine Conflicts:

  • The biggest single pipeline carrying Russian gas to Germany started annual maintenance, with flows expected to stop for 10 days, but governments, markets and companies are worried the shutdown might be extended due to the war in Ukraine.
  • Russian weapons pounding Ukraine’s second largest city Kharkiv killed at least three people, authorities said, while rescuers pulled survivors from the rubble of an earlier strike on an apartment block that killed 19 people in another city.

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