Thursday Briefing: From DXY to Russia – Ukraine; May 26, 2022

US Dollar Index Overview

• The DXY trades marginally lower on Thursday and hovers around 102.00 mark.
• The intraday high is 102.26 and low at 101.75 mark.
• A day Chart with triple EMA confirms bullish trend while H1 chart suggests down trend for the time being.
• Immediate hurdles are seen at 102.26 to 101.75 mark.
• A sustained close of either side on H1 chart requires for the further directions.

Key Headlines for the FX market:

• The Texas gunman who murdered 19 children and two teachers posted an online message warning that he was going to shoot up an elementary school minutes before he attacked, Governor Greg Abbott said, as harrowing new details emerged – Reuters.
• Pandemic-hit Shanghai, China’s financial hub, unveiled more post-lockdown plans as it moves towards a return to normalcy, but a country-wide economic recovery is still a distance away, heightening a sense of urgency for more support – Reuters.
• Pakistan’s ousted prime minister Imran Khan disbanded a protest march by supporters after clashes with police outside parliament, but threatened that they would return unless an election was called within six days – Reuters.
• Two lawmakers from Britain’s governing Conservative Party pulled their support for Boris Johnson over a damning report that detailed a series of alcohol-fueled lockdown-breaking parties at his 10 Downing Street office – Reuters.
• Russia is advancing a new law allowing it to take control of the local businesses of western companies that decide to leave, raising the stakes for multinationals trying to exit – Reuters.
• Global stocks are forecast to recover from current levels but stay well below record highs this year and next as a majority of more than 150 equity analysts polled by Reuters predicted a rebound that is both lackluster and uneven – Reuters.

Latest updates on Russia – Ukraine Conflicts:

• Advancing Russian forces came closer to surrounding Ukrainian troops in the east, briefly seizing positions on the last highway out of a crucial pair of Ukrainian-held cities before being beaten back, a Ukrainian official said – Reuters.
• Russia has poured thousands of troops into its assault in the eastern Donbas region, attacking from three sides in an attempt to encircle Ukrainian forces in Sievierodonetsk and Lysychansk – Reuters.
• Ukrainian President Volodymyr Zelenskiy savaged suggestions that Kyiv give up territory and make concessions to end the war with Russia, saying the idea smacked of attempts to appease Nazi Germany in 1938 – Reuters.
• Russia’s foreign ministry said that reporters from Western countries will be expelled from Russia if YouTube blocks access to its spokeswoman’s briefings – Reuters.
• Ukraine says war in east at ‘maximum intensity’.
• The sources said Shell has recently entered into talks with a group of Indian companies, including ONGC Videsh and Gail , over its 27.5% stake in the Sakhalin-2 LNG plant on Russia’s eastern flank.
• US aims to leverage Russia-Ukraine bloc against China.
• After long trek to Davos, Ukrainians await more Western aid.

Source: Timesofindia

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
Good Luck