Thursday Briefing: From DXY to Latest FX Headlines; Aug 25, 2022
US Dollar Index Overview
- The DXY exhibits range bound movement and trading around 108.50 mark.
- It made intraday high at 108.68 and low at 107.99 mark.
- A day Chart and H1 chart with triple EMA suggest bullish trend for the time being.
- Immediate hurdles are seen at 108.81 to 108.05 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:
- Federal Reserve Chair Jerome Powell’s message on inflation and interest rates at this year’s Jackson Hole central banking conference in Wyoming will strike a tone entirely different from the soothing one he used at the same event just one year ago.
- Americans bearing heavy college debt loads welcomed President Joe Biden’s announcement that he would forgive $10,000 in student loans, and some shared hopes they can jettison extra work hours and perhaps take a vacation or return to school.
- Biden will today stage his first political rally in the final stretch to the November midterm congressional elections, looking to give Democrats a boost and prevent Republicans from taking control of Congress.
- Republican hopes of taking control of the Senate could hinge on former football star Herschel Walker, a first-time candidate endorsed by Donald Trump, whose campaign appears to be lagging behind other Republicans in Georgia.
- Taiwan proposed $19 billion in defense spending for next year, a double-digit increase on 2022 that includes funds for new fighter jets, weeks after China staged large-scale military exercises around the island it views as its territory.
- Most votes in Angola’s parliamentary elections have been counted and provisional results show that the ruling MPLA party is ahead with a 52% majority, while their main opposition rivals have 42%, the election commission said.
- Former finance minister Rishi Sunak, one of two candidates vying to be Britain’s next prime minister, said it was a mistake to have “empowered” scientists during the coronavirus pandemic and that the downsides of lockdowns were suppressed. Sunak said the government was “wrong to scare people” about COVID.
Latest updates on Russia – Ukraine Conflicts:
- A Russian attack killed 25 civilians when missiles struck a railway station and a residential area in eastern Ukraine, officials in the capital Kyiv said, as the nation marked its Independence Day under heavy shelling.
- Russia’s record employment signals a surprisingly smooth decoupling from the West. Its rapid replacement of McDonald’s and Starbucks says business as usual. Yet pressures are building inside its economic machine.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!