Wednesday Briefing: From DXY to Latest Russia – Ukraine Conflicts; June 29, 2022

US Dollar Index Overview

• The DXY exhibits range bound movement and consolidates around 104.50 mark.
• The intraday high is 104.69 and low at 104.35 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 104.70 to 104.30 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:

• Sweden and Finland looked set for fast-track membership of NATO after Turkey lifted a veto on them joining.
• Sri Lankan doctors and other medical staff as well as teachers will take to the streets today to demand that the government solve a severe fuel shortage at the heart of the South Asian country’s worst economic crisis in decades.
• EU countries clinched deals on proposed laws to combat climate change, backing a 2035 phase-out of new fossil fuel car sales and a multibillion-euro fund to shield poorer citizens from CO2 costs.
• Global stock markets slipped for the second straight day and bond yields inched lower on growing fears that policymakers bent on dampening inflation will tip their economies into recession.
• European Central Bank policymakers are weighing up whether or not they should announce the size and duration of their upcoming bond-buying scheme, designed to curb financing costs for Italy and other debt-laden countries.
• The ECB is set to announce the new tool on July 21, along with its first interest rate hike in more than a decade.
• Britain’s economy is struggling under the strain of two major risks in the form of double-digit inflation and a possible recession, leaving the Bank of England in a dilemma about how much further it should raise interest rates.

Latest updates on Russia – Ukraine Conflicts:

• Russian forces struck at targets in the Mykolaiv area of southern Ukraine and intensified attacks on fronts across the country as NATO members met in Madrid to plan a course of action against the challenge from Moscow.
• Mayor Oleksandr Senkevych said eight missiles had hit the city, and urged residents to evacuate.
• NATO allies will continue to supply Ukraine with weapons in its war against Russia for as long as necessary, German Chancellor Olaf Scholz said in Madrid on Wednesday.

Source: Reuters

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

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