Wednesday Briefing: From DXY to Latest FX Headlines; Aug 24, 2022

US Dollar Index Overview

  • The DXY recovers sharply on Wednesday and stabilizes around 109.00 mark.
  • It made intraday high at 109.04 and low at 108.51 mark.
  • A day Chart and H1 chart with triple EMA suggest bullish trend for the time being.
  • Immediate hurdles are seen at 109.24 to 108.52 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:

  • Thailand’s Constitutional Court suspended Prime Minister Prayuth Chan-ocha from official duties, after deciding to hear a petition seeking review of his legally mandated eight-year term limit.
  • For the first time a South Korean general is commanding annual joint drills with American forces, the U.S. military said, a step toward Seoul’s long-delayed goal of gaining command of allied forces in the event of a war.
  • Angolans voted in a tight race in which the main opposition coalition has its best-ever chance of victory, as millions of young people left out of its oil-fueled booms are expected to express frustration with nearly five decades of MPLA rule – Reuters.
  • President Joe Biden’s public approval rating rose this week to its highest level since early June, following a series of legislative wins, according to a Reuters/Ipsos opinion poll.
  • This time last year, the world’s biggest central banks were united in getting the inflation story wrong. Now, as top policymakers gather for the Kansas City Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming, the U.S. central bank looks like it might manage a ‘soft landing’ for its own economy, but the outlook for Europe is far more worrying.
  • Another dramatic spike in natural gas prices appears to have ended any hopes that Europe’s inflation battle is set to ease, with financial markets now bracing for higher prices, a faster pace of interest rate hikes and a deeper economic downturn.
  • Japan will restart more idled nuclear plants and look at developing next-generation reactors, Prime Minister Fumio Kishida said, setting the stage for a major policy shift on nuclear energy a decade after the Fukushima disaster.

Latest updates on Russia – Ukraine Conflicts:

  • Ukraine was “reborn” when Russia invaded six months ago, President Volodymyr Zelenskiy said, marking 31 years of his country’s independence from the Soviet Union with a vow to drive Russian forces out completely.

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