Tuesday Briefing: Be Watchful as DXY Hits Highest Level Since Dec 2002; July 05, 2022

US Dollar Index Overview

• The DXY strengthens sharply on Tuesday and hits highest level since Dec 2002.
• It made intraday high at 106.35 and low at 105.05 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 106.52 to 105.90 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:

• A gunman perched on a rooftop opened fire on families waving flags and children riding bikes at a Fourth of July parade, killing six and wounding more than 36 in the Chicago suburb of Highland Park. An elderly man from Mexico and a synagogue teacher were among the dead.
• The Ohio city of Akron declared a state of emergency, setting a curfew and canceling Independence Day fireworks, after protests over the police killing of an unarmed Black man turned unruly on Sunday night.
• President Joe Biden said freedoms in America were under assault and urged citizens to engage in “principled patriotism” while the country faced economic challenges and national divisions.
• Italy declared a state of emergency for areas surrounding the river Po, which accounts for roughly a third of the country’s agricultural production and is suffering its worst drought for 70 years.
• U.S. Air Force F-35A stealth fighters arrived in South Korea on their first publicly announced visit since 2017 as the allies and nuclear-armed North Korean engage in an escalating cycle of displays of weapons.
• The euro sank to a two-decade low versus the dollar as another surge in natural gas prices reignited worries about the health of the euro zone economy and data showed euro zone business growth slowed sharply in June.
• News that Norwegian offshore workers began a strike that will reduce oil and gas output added to fears about a European energy shortage.
• The Bank of England warned that the economic outlook for Britain and the world had darkened and told banks to ramp up capital buffers to ensure they can weather the storm.
• By some early estimates, the U.S. economy, as measured by gross domestic product, may have shrunk in the three months from April through June.
• China will set up a state infrastructure investment fund worth $74.7 billion to spur infrastructure spending and revive a flagging economy.

Latest updates on Russia – Ukraine Conflicts:

• Russian forces set their sights on their next objectives in Ukraine’s eastern Donetsk province after President Vladimir Putin claimed victory in neighbouring Luhansk province and the five-month long war entered a new phase.

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