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.
Keep an eye open for the latest news and fundamentals affecting the FX markets.
Take a look and do trade wisely!