Wednesday Briefing: From DXY to Latest Russia – Ukraine Conflicts, July 13, 2022

US Dollar Index Overview

  • The DXY spikes up sharply after U.S. Inflation data and touches 108.58 mark.
  • It made intraday high at 108.58 and low at 107.74 mark.
  • A day Chart and H1 chart with triple EMA suggest up trend for the time being.
  • Immediate hurdles are seen at 108.60 to 107.82 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. Economy came up with the strong reading of U.S. Inflation data at 1.3 pct vs 1.00 previous released.
  • Sri Lankan President Gotabaya Rajapaksa fled the country and hundreds of protesters stormed the prime minister’s office demanding his ouster, as a people’s uprising over a devastating economic crisis overwhelmed security forces.
  • U.S. President Joe Biden arrives in Israel to kick off a high-stakes trip to the Middle East dominated by efforts to persuade Gulf allies to pump more oil and bring Israel and Saudi Arabia closer together.
  • U.K. Conservative lawmakers will vote today to narrow the field of eight candidates hoping to succeed Boris Johnson as party leader and prime minister, as rival camps trade barbs in an increasingly fractious contest for the leadership.
  • China’s exports rose at their fastest pace in five months in June as factories revved up after the lifting of COVID lockowns, but a slowdown in imports, fresh virus flare-ups and a darkening global backdrop pointed to a bumpy road ahead for the economy.
  • Britain’s economy grew unexpectedly in May, driven by a rise in doctor appointments but also broader demand for things such as holidays, according to data that could reassure the Bank of England about its plans to keep on raising interest rates.

Latest updates on Russia – Ukraine Conflicts:

  • Ukraine said that a deal to resume grain exports blocked by Russia appeared very close as four-way talks prepared to resume, raising hopes of an end to a standoff that has exposed millions to the risk of starvation.
  • Ukraine said it had carried out a long-range rocket strike against Russian forces in southern Ukraine, killing 52 people. Pro-Russian forces said the strike hit civilian infrastructure, killing seven and injuring around 70.
  • The United States called on Russia to immediately release Ukrainians it has forced out of their home country and allow outside observers, citing reports Moscow was putting Ukrainian children up for adoption and “disappearing” thousands of others.

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