Thursday Briefing: From DXY to Latest Russia – Ukraine Conflicts: July 28, 2022
US Dollar Index Overview
- The DXY weakens sharply after U.S. Advance GDP data and hovers around 106.50 mark.
- It made intraday high at 106.97 and low at 106.05 mark.
- A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
- Immediate hurdles are seen at 106.98 to 106.12 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:
- Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Joe Manchin, D-W.V., on Wednesday unveiled a long-anticipated reconciliation package that would invest hundreds of billions of dollars to combat climate change and advance clean energy programs.
- Schumer-Manchin reconciliation bill has $369 billion to fight climate change.
- BOJ Deputy Governor Amamiya – BOJ must support economy with monetary easing.
- The U.S. economy contracted again in the second quarter amid aggressive monetary policy tightening from the Federal Reserve to combat high inflation, which could fan financial market fears that the economy was already in recession.
- India, which is trying to expand its influence in Sri Lanka amid the island’s economic troubles and is worried that China is also making inroads, said on Thursday it was aware of reports about the planned visit of a Chinese vessel to Sri Lanka’s Hambantota port, which was built with money from Beijing.
- Indonesia expanded a cooperation agreement with South Korea on Thursday relating to the construction of a new capital city on Borneo island to replace overcrowded Jakarta, paving the way for Korean firms to participate in building digital infrastructure.
- Malaysia on Thursday passed a law discouraging elected lawmakers from switching political parties, following a series of defections that has caused political instability in recent years.
- U.S. President Joe Biden and China’s Xi Jinping began their fifth call as leaders on Thursday, as concerns mounted over a possible visit to Chinese-claimed Taiwan by U.S. House Speaker Nancy Pelosi.
- French President Emmanuel Macron hosts Saudi Crown Prince Mohammed bin Salman (MBS) on Thursday, part of increased Western efforts to court the major oil-producing state amid the war in Ukraine and faltering talks to revive a nuclear deal with Iran.
Latest updates on Russia – Ukraine Conflicts:
- Ukraine confirmed experienced investigator Oleksandr Klymenko as the head of its Specialised Anti-Corruption Prosecutor’s Office on Thursday, responding to a European Union request as it seeks EU membership – Reuters.
- Russia’s media regulator has filed a lawsuit to revoke the registration of the independent Novaya Gazeta newspaper, according to documents published on a court website – Reuters.
- Russian strikes hit military base outside Kyiv: Ukraine army – TOI.
- Russia’s media regulator asks for Novaya Gazeta’s registration to be revoked – TOI.
- Ukraine voices ‘sadness’ over ‘Vladimir Putin’ chant in Istanbul – TOI.
- Russia-EU gas flows via Nord Stream, Ukraine remain steady – TOI.
- India to restart Ukraine sunflower oil imports as trade eases – TOI.
- US rocket system enables Ukraine to pummel key supply bridge – TOI.
- Ukraine to start seaborne gasoline imports from Lithuania – TOI.
- Ukraine conflict affected India’s telecom, tea exports: Centre in Parliament (ANI) – TOI.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!