Wednesday Briefing: From DXY to Russia – Ukraine Conflicts; June 01, 2022

US Dollar Index Overview

• The DXY weakens sharply in early U.S. session and failed to find support above 102.00 mark.
• The intraday high is 102.10 and low at 101.76 mark.
• A day Chart with triple EMA and H1 chart suggest up trend for the time being.
• Immediate hurdles are seen at 102.05 to 101.70 mark.
• A sustained close of either side on H1 chart requires for the further directions.

Key Headlines for the FX market:

• Shanghai sprung back to life after two months of bitter isolation under a ruthless COVID lockdown, with shops reopening and people going back to offices, parks and markets – Reuters.
• British Prime Minister Boris Johnson is facing the growing threat of a confidence vote as two more lawmakers suggested they had lost faith in his government over the ‘partygate’ scandal and a former party leader said he could be challenged next week. Here’s how Johnson could be ousted – Reuters.
• Former Republican vice presidential candidate Sarah Palin lost her bid to have the judge who oversaw her unsuccessful defamation lawsuit against the New York Times disqualify himself and order a new trial – Reuters.
• U.S. Treasury Secretary Janet Yellen said that she was wrong in the past about the path inflation would take, but said taming price hikes is President Joe Biden’s top priority and he supports the Federal Reserve’s actions to achieve that – Reuters.
• Manufacturing growth in the euro zone slowed last month as factories faced supply shortages, high prices and a fall in demand, according to a survey which suggested consumers were switching their spending to tourism and recreation – Reuters.

Latest updates on Russia – Ukraine Conflicts:

• Russian troops pressed their assault on a factory city targeted in their push to grab a swathe of eastern Ukraine, while the United States said it would supply advanced rockets to Kyiv to help it force Moscow to negotiate an end to the war – Reuters.
• Ukraine’s General Staff said Russian forces, now 98 days into their invasion, were pounding infrastructure in eastern and southern regions including the symbolically important industrial city of Sievierodonetsk, the main focus of Moscow’s offensive in recent days – Reuters.
• Russia sharply criticised the U.S. decision to supply advanced rocket systems and munitions, warning of an increased risk of a direct confrontation between the two superpowers. Meanwhile, Germany said it will supply Ukraine with the IRIS-T air defence system – Reuters.
• Denmark votes in referendum on EU defence amid Ukraine war.
• Germany to send Kyiv anti-aircraft missiles, radar systems.
• High prices, Asian markets could blunt EU ban on Russian oil.

Source: Times of india

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

Take a look and do trade wisely!
Good Luck