Tuesday Briefing: From DXY to Latest FX Headlines, Aug 09, 2022
US Dollar Index Overview
- The DXY depreciates on Tuesday and hovers around 106.00 mark.
- It made intraday high at 106.40 and low at 105.96 mark.
- A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
- Immediate hurdles are seen at 106.50 to 105.81 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:
- Taiwan’s foreign minister said that China was using the military drills it launched in protest against U.S. House Speaker Nancy Pelosi’s visit as a game-plan to prepare for an invasion of the self-ruled island.
- At least eight people died in and around Seoul overnight, South Korean authorities said, after torrential rain knocked out power, caused landslides and left roads and subways submerged.
- Britain’s weather service issued an amber ‘Extreme Heat’ warning for parts of England and Wales, with no respite in sight from hot dry conditions that have sparked fires, broken temperature records and strained the nation’s infrastructure.
- U.S. consumers grappling with soaring inflation face more pain from high beef prices as ranchers are reducing their cattle herds due to drought and lofty feed costs, a decision that will tighten livestock supplies for years.
- The Bank of England will probably have to raise interest rates further from their current 14 year-high to tackle inflation pressures that are gaining a foothold in Britain’s economy, BoE Deputy Governor Dave Ramsden told Reuters.
- President Joe Biden will today sign a bill to provide $52.7 billion in subsidies for U.S. semiconductor production and research and to boost efforts to make the United States more competitive with China’s science and technology efforts.
- UK’s Liz Truss still favours tax cuts over direct support on energy bills.
- A coalition led by Prime Minister Narendra Modi’s party was set to lose power in Bihar, the third most populous state in India, after its partner pulled out on Tuesday to start alliance talks with the opposition.
Latest updates on Russia – Ukraine Conflicts:
- Russia unleashed ground forces, air strikes and artillery as it pressed ahead with a grinding offensive designed to complete its capture of eastern Ukraine, but Kyiv said its troops were putting up fierce resistance and holding the line.
- Russian airlines, including state-controlled Aeroflot, are stripping jetliners to secure spare parts they can no longer buy abroad because of Western sanctions.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!