Wednesday Briefing: From DXY, FOMC Meeting Minutes to Latest FX Headlines; Aug 17, 2022

US Dollar Index Overview

  • The DXY rises on Wednesday and stabilizes above 106.50 mark.
  • It made intraday high at 106.88 and low at 106.33 mark.
  • A day Chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • Immediate hurdles are seen at 106.90 to 106.33 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

U.S. FOMC Meeting Minutes:

Today the key event for the day will be U.S. FOMC Meeting Minutes scheduled at 1800 GMT/2330 IST. In today’s meeting minutes, Fed may clarify that smaller rate hikes are on the way over the coming months as Chairman Jerome Powell acknowledges in the previous statement that “It likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation.”In the other scenario, Fed Chairman Powell may suggest that “another unusually large increase could be appropriate at our next meeting.” According to the statement, FOMC Meeting Minutes may influence the near-term outlook for the U.S. Dollar.

Key Headlines for the FX market:

  • President Joe Biden signed into law a $430 billion bill that is seen as the biggest climate package in U.S. history, designed to cut domestic greenhouse gas emissions as well as lower prescription drug prices and high inflation.
  • Explosions and fires ripped through at least 17 locations in southern Thailand, authorities said, in what appeared to be multiple coordinated attacks that injured seven people.
  • British consumer price inflation jumped to 10.1% in July, its highest since February 1982, intensifying the squeeze on households.
  • U.S. Republican Representative Liz Cheney vowed to do all she could to keep Donald Trump out of the White House and said she would decide in the coming months whether to run for president herself, after she lost to a Trump-backed primary challenger in Wyoming on Tuesday.
  • Chinese troops will travel to Russia to take part in joint military exercises led by the host and including India, Belarus, Mongolia, Tajikistan and other countries, China’s defence ministry said on Wednesday.
  • Sweden’s government said on Wednesday it would hand around 60 billion crowns ($5.8 billion) to companies and households to ease the pain of soaring electricity prices, as it looks to woo voters ahead of September’s general election.

Latest updates on Russia – Ukraine Conflicts:

  • Russia blamed saboteurs for explosions at one of its military bases in Moscow-annexed Crimea while Ukraine hinted it was responsible as its officials said their strategy was to destroy supply lines supporting Russia’s invasion.

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