Wednesday Briefing: From DXY to Latest Russia – Ukraine Conflicts; July 06, 2022

US Dollar Index Overview

• The DXY continues to trade higher on Wednesday and jumps back above 107.00 mark.
• It made intraday high at 107.14 and low at 106.35 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 107.31 to 106.30 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:

• British Prime Minister Boris Johnson was clinging to power, gravely wounded by the resignation of ministers who said he was not fit to govern and with a growing number of lawmakers calling for him to go.
• A wild storm system has moved away from Sydney after pounding Australia’s largest city with four days of torrential rain, satellite images showed on Wednesday, although river waters stayed above danger levels, forcing more evacuations.
• China is fighting nascent COVID-19 flare-ups across the country with mass testing and fresh restrictions.
• The secretary general of oil producers group OPEC, Mohammad Barkindo, has died, the boss of Nigerian National Petroleum Corp announced. Barkindo, 63, a veteran of the oil industry, was due to step down at the end of this month after six years in the top job.
• Caspian Pipeline Consortium, which takes oil from Kazakhstan to the Black Sea via one of the world’s largest pipelines, has been told by a Russian court to suspend activity for 30 days, although sources said exports were still flowing.
• More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices hit record highs.
• A closely watched part of the U.S. Treasury yield curve inverted again, as investors continue to price in the chance that the Federal Reserve’s aggressive move to bring down inflation will push the economy into recession.
• Nepal’s Finance Minister Janardan Sharma resigned on Wednesday after the parliamentary speaker ordered an investigation into allegations of unauthorised changes in the budget.
• Bulgaria has blocked a bank transfer worth some $890,000 to the Russian embassy because of EU sanctions, Finance Minister Assen Vassilev said on Wednesday.
• Britain’s new finance minister Nadhim Zahawi pledged on Wednesday to rebuild and grow the struggling economy and said he would look at all options to do that, including possible tax cuts.

Latest updates on Russia – Ukraine Conflicts:

• Ukrainian defenders fought desperately to withstand a major Russian offensive in the Donetsk region, with the enemy laying down heavy artillery fire to pave the way for ground forces to advance, a senior Ukrainian official said.
• Sri Lanka’s president on Wednesday said he urged Russian leader Vladimir Putin to help his cash-strapped island nation import fuel as it faces its worst economic crisis in seven decades.
• The Kremlin criticised Japan on Wednesday over what it called a “very unfriendly position” towards Russia, saying this hampered the development of economic relations, including in energy.
• Former Russian President Dmitry Medvedev told the United States on Wednesday that attempts by the West to punish a nuclear power such as Russia for the war in Ukraine risked endangering humanity.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
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