Thursday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 14, 2022

US Dollar Index Overview

• The DXY spikes up sharply in early U.S. Session and jumps above 109.00 mark.
• It made intraday high at 109.05 and low at 108.20 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 109.10 to 108.30 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:

• U.S. President Joe Biden and Israeli Prime Minister Yair Lapid signed a joint pledge to deny Iran nuclear weapons, closing ranks after long-running disputes between the allies over global diplomacy with Tehran. Israel embraced Biden as an old friend at the start of a high-stakes visit to the Middle East which sees him fly to Saudi Arabia tomorrow.
• A new wave of coronavirus infections is rapidly spreading through Asia, prompting warnings for residents from New Zealand to Japan to take precautions to slow the outbreak and help prevent healthcare systems from being overwhelmed.
• For the third time this summer, Shanghai issued its highest alert for extreme heat as temperatures appeared set to test records in China’s most populous city. In Europe, thousands of firefighters battled more than 20 blazes that raged across Portugal and western Spain amid a heatwave that pushed temperatures above 45 degrees Celsius in some parts.
• Sri Lanka’s main city, Colombo, was calm as people waited for the resignation of President Gotabaya Rajapaksa, although a curfew was imposed and troops patroled the streets to prevent any outbreak of violence.
• The United States successfully tested two Lockheed Martin hypersonic missiles recently, the Pentagon said, amid growing concerns Russia and China have had more success developing their own hypersonic weapons.
• The U.S. Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis points rate hike this month after a grim inflation report showed price pressures accelerating. But U.S. gasoline prices are finally falling, giving some relief to consumers in the world’s largest user of the fuel.
• Europe’s single currency dropped below parity against the dollar for the first time in almost 20 years, battered by growing recession fears in the euro area. Here’s why the euro’s fall matters, and why its fate is now with energy markets.
• Italian Prime Minister Mario Draghi’s coalition government risked collapse on Thursday after the 5-Star Movement, one of its members, failed to support a parliamentary confidence vote including measures to offset the cost of living crisis.
• Britain and Japan are close to an agreement to merge their next-generation Tempest and F-X fighter jet programmes, with the two countries aiming for a deal on a new joint project by year-end.

Latest updates on Russia – Ukraine Conflicts:

• Russian missiles struck the Ukrainian city of Vinnytsia far behind the frontlines in an attack which Ukrainian officials said had left at least 17 people dead.
• The strike came a day after a breakthrough in talks between Moscow and Kyiv to unblock Ukrainian grain exports.
• Russian missiles struck the Ukrainian city of Vinnytsia far behind the frontlines on Thursday in an attack which Ukrainian officials called a war crime and said had killed at least 20 people, including three children.
• Ukraine says it repels assaults in the east.

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