Thursday Briefing: From DXY, Russia – Ukraine Conflicts to Latest China – Taiwan ongoing Anxiety; Aug 04, 2022

US Dollar Index Overview

• The DXY moves in stiff boundaries ahead of U.S. NFP job data due tomorrow.
• It made intraday high at 106.51 and low at 105.15 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 106.05 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:

• China fired multiple missiles around Taiwan today as it launched unprecedented military drills a day after a visit by U.S. House of Representatives Speaker Nancy Pelosi to the self-ruled island that Beijing regards as its sovereign territory.
• Five ballistic missiles fired by China appear to have landed in Japan’s exclusive economic zone (EEZ), Japanese defence minister Nobuo Kishi said on Thursday, part of military exercises launched by China earlier in the day.
• Taiwan says various government websites hacked.
• China’s average ground temperatures have risen much more quickly than the global average over the past 70 years and will remain “significantly higher” in the future as the challenges of climate change mount, a government official said.
• Kenya will hold elections on Aug. 9 to select a new president, parliament, county governors and assemblies. President Uhuru Kenyatta will be stepping down after serving his constitutionally allowed 10 years.
• The Bank of England raised interest rates by the most in 27 years today, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%.
• Cuba announced it will begin purchasing dollars and other convertible currencies at nearly five times the current rate in an effort to undercut the informal money market and capture the funds.
• U.S. House of Representatives Speaker Nancy Pelosi and her South Korean counterpart vowed on Thursday to support efforts to maintain a strong deterrence against North Korea and achieve its denuclearization.
• A United Nations Group of Experts said it has “solid evidence” that Rwandan troops have been fighting alongside the M23 rebel group in eastern Democratic Republic of Congo and providing it with weapons and support.
• OPEC leaders Saudi Arabia and the United Arab Emirates stand ready to deliver a “significant increase” in oil output should the world face a severe supply crisis this winter, sources familiar with the thinking of the top Gulf exporters said.

Latest updates on Russia – Ukraine Conflicts:

• Ukraine said Russia had started creating a military strike force aimed at President Volodymyr Zelenskiy’s hometown of Kryvyi Rih, while NATO moved closer to its most significant expansion in decades as the alliance responds to the invasion of Ukraine.
• Russia has repeatedly warned Finland and Sweden against joining NATO.
• Ukraine said on Thursday it had been forced to cede some territory in the east of the country in the face of a Russian offensive, and the head of the NATO military alliance said Moscow must not be allowed to win the war.

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