Wednesday Briefing: From DXY to Latest Russia – Ukraine Conflicts; Aug 03, 2022

US Dollar Index Overview

  • The DXY exhibits range bound movement and consolidates around 106.20 mark.
  • It made intraday high at 106.54 and low at 105.97 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 106.48 to 106.05 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:

  • Oil prices inched up on Wednesday, erasing earlier losses, as the OPEC+ producer group was set for a small output increase of 100,000 barrels per day, a document seen by Reuters showed, dashing U.S. hopes of a meaningful supply boost.
  • World stocks stabilised on Wednesday as markets weighed risks from U.S. House Speaker Nancy Pelosi’s visit to Taiwan and comments from Federal Reserve officials talking up the chance of aggressive interest rate hikes.
  • The West’s energy giants are set to return a record $30 billion to investors after reporting bumper profits in the second quarter of the year following a surge in energy prices.
  • U.S. House of Representatives Speaker Nancy Pelosi left Taiwan after pledging solidarity and hailing its democracy, leaving a trail of Chinese anger over her brief visit to the self-ruled island that Beijing claims as its own.
  • Taiwan pledged on Wednesday to step up security against possible disruptions by “overseas forces” including cyber attacks as tensions with China rise following the visit to the self-ruled island by U.S. House of Representatives Speaker Nancy Pelosi.
  • Former British finance minister Rishi Sunak said it was still “early days” in the contest to replace Prime Minister Boris Johnson, a day after an opinion poll showed his rival Liz Truss had extended her lead in the race to be Britain’s next leader.
  • The German government will have to amend its energy security law again in September as its gas levy cannot yet be imposed on all consumers, including those with fixed prices contracts, government and parliamentary.
  • Export restrictions being considered by Washington to halt China’s advances in semiconductor manufacturing could come at a substantial cost, experts say, potentially disrupting fragile global chip supply chains – and hurting U.S. businesses.
  • China is suspending imports of citrus fruits, chilled white striped hairtail and frozen horse mackerel from Taiwan starting Aug. 3, China’s customs said.
  • Sri Lanka will restart bailout talks with the International Monetary Fund (IMF) in August, its new president said on Wednesday, while calling on lawmakers to form an all-party government to resolve a crippling economic crisis.
  • Peruvian Prime Minister Anibal Torres suddenly resigned on Wednesday morning, amid widening criminal probes centered on President Pedro Castillo, who has grown increasingly isolated after one year in office.

Latest updates on Russia – Ukraine Conflicts:

  • A Russian-installed official in Ukraine said on Wednesday that Ukrainian forces had repeatedly used Western arms to attack Europe’s largest nuclear power plant which is now controlled by Russian forces.
  • Ukrainian President Volodymr Zelenskiy dismissed the importance of the first grain export shipment from his country since Russia invaded, saying it was carrying a fraction of the crop Kyiv must sell to help salvage its shattered economy.
  • Kyiv urgently needs to ship 10 mln tonnes to cut deficit.

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