Monday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 18, 2022

US Dollar Index Overview

• The DXY erases previous gain and remains well supported around 107.50 mark.
• It made intraday high at 107.95 and low at 107.19 mark.
• A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
• Immediate hurdles are seen at 107.28 to 107.71 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:

• World stocks, U.S. futures, oil prices and bond yields all rose as scaled back bets on the latest Federal Reserve rate hike next week and support pledges for China’s economy lifted the mood.
• European equities started the week more than 1% higher and the euro was pushing up and away from parity at $1.0138 with a big week coming up.
• Britain was on course for its hottest day on record with temperatures forecast to hit 40C for the first time, forcing train companies to cancel services, schools to close early and ministers to urge the public to stay at home.
• Much of Europe is baking in a heatwave, with wildfires raging across tinder-dry countryside in Portugal, Spain and France.
• South Korean Foreign Minister Park Jin began a meeting in Tokyo with his Japanese counterpart, carrying a message of reconciliation in hopes that the neighbors can overcome historical disputes and repair strained ties.
• North Korea is on the path to “finally defuse” a crisis stemming from its first acknowledged outbreak of COVID, the state news agency said, while Asian neighbors battle a fresh wave of infections driven by Omicron subvariants.
• Ghana has officially confirmed two cases of the Marburg virus, a highly infectious disease similar to Ebola, its health service said, after two people who later died tested positive for the virus earlier this month.

Latest updates on Russia – Ukraine Conflicts:

• President Volodymyr Zelenskiy sidelined his childhood friend as head of Ukraine’s security service, and another close ally as top prosecutor, in the biggest internal purge of the war, citing their failure to root out Russian spies.
• Russian President Vladimir Putin and his Turkish counterpart Tayyip Erdogan will discuss the export of Ukrainian grain at their meeting in Tehran on Tuesday, a Kremlin aide has told reporters.
• Russian President Vladimir Putin said on Monday that it was impossible to cut Russia off from the rest of the world, and that sanctions imposed by Western countries would not turn the clock back on Russia’s development.
• Officials from Russia, Ukraine, Turkey and the United Nations will most likely meet this week to discuss resuming Ukraine’s Black Sea grain exports, Turkish Defence Minister Hulusi Akar said on Monday.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

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