Tuesday Briefing: From DXY to Russia – Ukraine, Let’s Have a Look; May 24, 2022
US Dollar Index Overview
- The DXY moves in rigid boundaries and stabilizes below 102.00 mark.
- The intraday high is 102.32 and low at 101.75 mark.
- A day Chart with triple EMA confirms up trend while H1 chart suggests down trend for the time being.
- Immediate hurdles are seen at 102.32 to 101.75 mark.
- A sustained close of either side on H1 chart requires for the further directions.
Key Headlines for the FX market:
- Georgia Republicans are expected to reject Donald Trump’s campaign to oust Governor Brian Kemp in today’s primary election, though polls show they are likely to back the former football star he has endorsed in their U.S. Senate primary. Former Vice President Mike Pence campaigned for Kemp last night, urging voters not to dwell on the past – Reuters.
- Texas Attorney General Ken Paxton is expected to fend off a challenge from fellow Republican George P. Bush in a primary run-off election that has pitted a Trump ally against the scion of two former presidents – Reuters.
- President Joe Biden said there was no change to a U.S. policy of “strategic ambiguity” on Taiwan, a day after he angered China by saying he would be willing to use force to defend the democratic island.
- The World Health Organization said there have been 131 confirmed monkeypox cases and 106 further suspected cases since the first was reported on May 7 outside the countries where it usually spreads. While the outbreak is unusual, it remains “containable” and limited, the WHO said – Reuters.
- Shares slid worldwide as fears about weak earnings and slowing growth punctured the recent mini-rally, while hawkish remarks from European Central Bank Chief Christine Lagarde reminded edgy markets that rate hikes loom – Reuters.
- The world is facing a major oil supply crunch as most companies are afraid to invest in the sector as they face green energy pressures, the head of Saudi Aramco told Reuters, adding it cannot expand production capacity any faster than promised – Reuters.
- The Russian rouble strengthened to levels not seen since March 2018 against the dollar, boosted by export-focused companies selling foreign currency to pay taxes and shrugging off a slight easing of capital controls. The rouble is currently the world’s best-performing currency – Reuters.
Latest updates on Russia – Ukraine Conflicts:
- Russian forces were launching an all-out assault to encircle Ukrainian troops in twin cities straddling a river in eastern Ukraine, a battle which could determine the success or failure of Moscow’s main campaign in the east – Reuters.
- Exactly three months after Russia invaded Ukraine, authorities in the second-largest city Kharkiv were expected to open the underground metro, where thousands of civilians had sought shelter for months under relentless bombardment – Reuters.
- The reopening is a symbol of Ukraine’s biggest military success over the past few weeks: pushing Russian forces largely out of artillery range of Kharkiv, as they did from the capital Kyiv in March – Reuters.
- Ukrainian President Volodymyr Zelenskiy said that President Vladimir Putin was the only Russian official he was willing to meet with to discuss how to end the war – Reuters.
- India says Quad countries understand its position on Ukraine.
- German finance minister – Full cost of rebuilding Ukraine impossible to quantify.
- Ukraine war could lead to food shortages in Africa, migration problems, says Polish president.
- US and India going to continue to consulting closely on how to mitigate these negative effects: US President Biden tells PM Modi on Russia-Ukraine war.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!