Wednesday Briefing: From DXY to Latest FX Headlines; Aug 10, 2022

US Dollar Index Overview

  • The DXY spikes down extremely and hits lowest level since July 05, 2022.
  • 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 105.55 to 104.82 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:

  • U.S. consumer prices did not rise in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for Americans who have watched inflation climb over the past two years.
  • Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar and cutting the risk of breaching Western sanctions against Moscow.
  • China’s military has “completed various tasks” around Taiwan but will conduct regular patrols, it said, potentially signaling an end to days of war games but also that Beijing will keep up the pressure against the island.
  • China has withdrawn a promise not to send troops or administrators to Taiwan if it takes control of the island, an official document showed.
  • Preliminary results from Kenya’s presidential election showed a tight race between the two main candidates vying to replace President Uhuru Kenyatta, with citizens praying an announcement of a winner would not unleash violence as in years past.
  • Japanese Prime Minister Fumio Kishida reshuffled his cabinet, dropping some ministers with links to the Unification Church after a growing backlash over the ruling party’s ties to the controversial group led to a slump in public support.
  • Wildfires raged in southwestern France, destroying sixteen houses, burning 6,000 hectares and forcing the evacuation of almost 6,000 people in an area already hit last month by huge blazes.
  • 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.
  • President Joe Biden’s public approval rose this week to its highest level since early June following a string of legislative victories, according to a Reuters/Ipsos opinion poll.

Latest updates on Russia – Ukraine Conflicts:

  • Russian shelling killed 11 people in Ukraine’s central Dnipropetrovsk region overnight, governor Valentyn Reznychenko said, as Britain said Russia had “almost certainly” established a major new ground force to support its war.

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