Thursday Briefing: From DXY to Latest FX Headlines: Aug 11, 2022

US Dollar Index Overview

  • The DXY trades slightly lower on Thursday and remains well supported below 105.00 mark.
  • It made intraday high at 105.46 and low at 104.73 mark.
  • A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • Immediate hurdles are seen at 105.10 to 104.70 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:

  • Wall Street headed for another day of gains on Thursday as investors banked on peaking inflation persuading central banks to dial back on their anticipated interest rate hikes in September.
  • China and South Korea clashed over a U.S. missile defense shield, threatening to undermine efforts by the new government in Seoul to overcome longstanding security differences.
  • The disagreement over the Terminal High Altitude Area Defence system installed in South Korea emerged after an apparently smooth first visit to China by South Korea’s foreign minister this week.
  • Two days after Kenya’s general election, officials had yet to announce who is leading the presidential race in East Africa’s regional powerhouse, as confused citizens struggled to make sense of divergent tallies from the media in a nail-bitingly close race.
  • A four-day “extreme heat” warning came into force in parts of England and Wales, with temperatures poised to top 35 Celsius in another heatwave that could cause wildfires and pressure water supplies and transport services.
  • In France, more than 1,000 firefighters backed by water-bombing aircraft battled a “monster” wildfire near the wine-growing heartland of Bordeaux for a third day.
  • The average price of U.S. retail gasoline fell below $4 per gallon for the first time in months, giving some relief to drivers in the world’s largest consumer of the fuel.
  • Slowing U.S. inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.
  • China’s war games around Taiwan have led Biden administration officials to recalibrate their thinking on whether to scrap some tariffs or potentially impose others on Beijing, setting those options aside for now, according to sources familiar with the deliberations.

Latest updates on Russia – Ukraine Conflicts:

  • Devastation at a Russian air base in Crimea, hit in an attack that suggested Kyiv may have obtained new long-range strike capability with potential to change the course of the war.
  • A grain-carrying ship that was scheduled to depart from Ukraine’s Chornomorsk port under a U.N.-brokered deal on Thursday was unable to set sail due to bad weather conditions, Turkey’s defence ministry said.
  • Russia has doubled the number of air strikes on Ukraine’s military positions and civilian infrastructure compared with the previous week, Ukrainian Brigadier General Oleksiy Hromov said on Thursday.

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