Wednesday Briefing: From DXY To Latest Russia – Ukraine Conflicts; July 20, 2022

US Dollar Index Overview

• The DXY exhibits range bound movement and consolidates around 106.72 mark.
• It made intraday high at 107.10 and low at 106.38 mark.
• A day Chart is up and H1 chart with triple EMA suggests down trend for the time being.
• Immediate hurdles are seen at 106.99 to 106.39 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:

• Emergency services battled wildfires across swaths of southern Europe amid mass evacuations, as warnings sounded in London after Britain’s hottest day that the fight against climate change needed to be stepped up.
• Italian Prime Minister Mario Draghi demanded unity among his coalition partners if they wanted him to stay in office, leaving his resignation threat hanging over parliament.
• Sri Lankan lawmakers voted in acting President Ranil Wickremesinghe as the new president, hoping his long experience in government would help pull the country out of a crippling economic and political crisis.
• President Joe Biden’s public approval rating fell to 36% this week to tie the lowest rating of his 19 months in the White House as inflation takes its toll on American life, according to a Reuters/Ipsos opinion poll.
• Power use in Texas and other Central U.S. states is expected to shatter all-time records in coming days as homes and businesses crank up their air conditioners for relief from the heat.
• The European Union will set out emergency plans today to curb gas usage after Putin warned the bloc that Russian supplies sent via the biggest pipeline to Europe, Nord Stream 1, were at risk of being reduced further.
• The U.S. Senate voted to move ahead with a slimmed-down version of legislation to provide billions of dollars in subsidies and tax credits for the semiconductor industry, hoping to ease a shortage that has disrupted production in industries from automobiles to electronics and high-tech weapons.
• Surging petrol and food prices last month pushed British inflation to its highest rate in 40 years, according to official figures that bolstered the chances of a rare half percentage-point Bank of England interest rate hike next month.
• At least four people were killed and 15 injured in a Turkish rocket attack in Iraq’s northern province of Dohuk, a Kurdish security source and a Kurdish official said on Wednesday.
• British Prime Minister Boris Johnson bowed out of his final showpiece parliamentary appearance with a round of applause from his party, jeers from opponents and an enigmatic exit line: “Mission largely accomplished … hasta la vista, baby.”

Latest updates on Russia – Ukraine Conflicts:

• Russian forces shelled eastern and southern Ukraine after Washington said it saw signs Moscow was preparing to formally annex territory it has seized during nearly five months of war.
• The United States will send four more high mobility artillery rocket systems (HIMARS) to Ukraine, U.S. Defense Secretary Lloyd Austin said on Wednesday, in the latest military package to bolster Kyiv as it confronts heavy pounding by Russian forces.
• Ukraine will ask international bondholders to agree to a 2-year delay on its debt payments so it can focus its dwindling financial resources on repelling Russia, a government resolution published on Wednesday showed.
• Russian President Vladimir Putin said on Wednesday that it was not clear in what condition the Nord Stream 1 turbine will be returned in after repairs in Canada, adding to uncertainty about the pipeline, which is due back in operation after maintenance.

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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