Tuesday Briefing: From DXY to Latest Russia – Ukraine Conflicts; June 28, 2022

US Dollar Index Overview

  • The DXY strengthens sharply after higher than expected U.S. Goods Trade balance and HPI data.
  • The intraday high is 104.36 and low at 103.77 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 104.46 to 103.77 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:

  • China slashed the quarantine time for inbound travelers by half, in a major easing of COVID-19 curbs that have deterred cross-border travel and resulted in international flights running at just 2% of pre-pandemic levels.
  • Japan baked under scorching temperatures for a fourth successive day, as the capital’s heat broke nearly 150-year-old records for June and authorities warned power supply remained tight enough to raise the specter of cuts. Climate change is driving this year’s extreme heat and flooding, scientists said in a study.
  • Iran, which holds the world’s second largest gas reserves, has applied to join the BRICS group of Brazil, Russia, India, China and South Africa that Beijing and Moscow cast as a powerful emerging market alternative to the West.
  • The European Central Bank’s upcoming bond-buying program will rein in rising borrowing costs for vulnerable euro zone countries while keeping the pressure on their governments to repair their budgets, the ECB’s President Christine Lagarde said.

Latest updates on Russia – Ukraine Conflicts:

  • Firefighters and soldiers searched for survivors in the rubble of a Ukrainian shopping mall, where authorities said 36 people were still missing after a Russian missile strike that killed at least 18.
  • President Tayyip Erdogan held firm on his stance towards Finland and Sweden’s NATO bids, saying Turkey wanted results not words to address its concerns, adding he will also push U.S. President Joe Biden on a “stalled” F-16 fighter jet purchase.
  • G7 leaders have agreed to study placing global price caps on imports of Russian energy to curb Moscow’s ability to fund its invasion of Ukraine and to contribute up to $5 billion to address global food insecurity. Here’s why a Russian oil price cap is easier said than done.
  • The G7 called the strike a Russian war crime.
  • German Chancellor Scholz sees no end to sanctions till Putin accepts failure.
  • G7 will commit up to $5 bln to fight hunger – U.S. official.
  • G7 leaders commit to climate club, make carbon-cutting pledges.
  • French President Emmanuel Macron said “Russia cannot and must not win this war,” adding that France would support Ukraine for as long as necessary.

Source: Reuters

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

Take a look and do trade wisely!
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