Thursday Briefing: From DXY to Latest Russia – Ukraine Conflicts; June 16, 2022
US Dollar Index Overview
- The DXY falls sharply and slips back below 105.00 mark.
- The intraday high is 105.59 and low at 104.50 mark.
- A day Chart is up and H1 chart with triple EMA suggests bearish trend for the time being.
- Immediate hurdles are seen at 105.40 to 104.50 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:
- The Swiss National Bank raised its policy interest rate for the first time in 15 years with a surprise 50 basis point hike that soured the mood and sent the safe-haven franc up sharply.
- The Federal Reserve approved its largest interest rate increase in more than a quarter of a century to stem a surge in inflation that U.S. central bank officials acknowledged may be eroding public trust in their power, and being driven by events seen increasingly out of their hands.
- Japan’s government bond market is being pushed to breaking point in a contest between foreign speculators and the Bank of Japan, creating challenges for loan pricing and bond sales and raising the prospect of government financing tangles down the track.
- Russia, supported by Belarus, Central African Republic, Kyrgyzstan and Mali, has torpedoed a Western-backed proposal to discuss whether its diamonds are funding war ahead of an international conflict diamond meeting in Botswana, letters seen by Reuters show.
- North Korea reported an outbreak of an unidentified intestinal epidemic in a farming region, putting further strain on the isolated country as it battles chronic food shortages and a wave of COVID-19 infections.
- Taiwan’s military showed off its latest domestically produced armored vehicle, the CM-34 Clouded Leopard, at a remote manufacturing site in the mountains of the central part of the island.
- Crowds in India set a train coach on fire and blocked railway tracks and roads in protests against a new military recruitment system, police said. Prime Minister Narendra Modi’s government this week announced an overhaul of recruitment for India’s armed forces, looking to bring down the average age of personnel and reduce pension expenditure.
Latest updates on Russia – Ukraine Conflicts:
- The leaders of Germany, France and Italy – all criticized in the past by Kyiv for support viewed as too cautious – made a joint visit to Ukraine, touring a town devastated by Russia’s invasion.
- President Joe Biden announced a fresh U.S. infusion of $1 billion in weapons for Ukraine that includes anti-ship rocket systems, artillery rockets, howitzers and ammunition.
- Russian gas supply to Europe fell further, sparking concerns about refilling storage for winter and igniting a diplomatic tussle as Russian supplier Gazprom blamed Western sanctions for hampering maintenance work.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!