Wednesday Briefing: From DXY to Russia – Ukraine Conflicts; June 08, 2022

US Dollar Index Overview

• The DXY erases previous gain and stabilizes back below 102.50 mark.
• The intraday high is 102.77 and low at 102.32 mark.
• A day Chart and H1 chart with triple EMA suggest up trend for the time being.
• Immediate hurdles are seen at 102.55 to 102.30 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:

• A Chinese official said an “iron-clad partnership” with Cambodia was bolstered by military cooperation, as work began on a China-funded upgrade of Cambodia’s biggest naval base that has raised U.S. concern about China’s growing influence.
• Iran removed two surveillance cameras of the International Atomic Energy Agency from one of its nuclear facilities, state television reported, a move that is likely to raise tensions with the U.N. nuclear watchdog.
• South Dakota Governor Kristi Noem, a staunch ally of former President Donald Trump, easily won the Republican nomination to seek reelection in November, while a former member of Trump’s cabinet was locked in a tight race in his Montana primary for the U.S. House of Representatives.
• The war in Ukraine has made the growth outlook far bleaker even though the global economy should avoid a bout of 1970s-style stagflation, the OECD said, slashing its growth forecasts and jacking up its inflation estimates.
• The audio streaming service Spotify Technology will host its first investor day since going public in 2018, hoping to stoke Wall Street’s enthusiasm despite the slowing global economy.

Latest updates on Russia – Ukraine Conflicts:

• Ukrainian troops holding out in the ruins of Sievierodonetsk came under renewed heavy assault from Russian forces who see the capture of the industrial city as key to control of the surrounding Luhansk region.
• In southern Ukraine, another major battleground in the war, authorities warned that Russian attacks on agricultural sites including warehouses were compounding a global food crisis that has stirred concerns of famine in some developing countries.
• Turkey’s foreign minister said a United Nations plan to restart Ukrainian grain exports along a sea corridor was “reasonable” and requires more talks with Moscow and Kyiv to ensure ships would be safe.
• The town of Valuyki in western Russia has become a crucial staging post in the latest phase of Russia’s war. It’s a place where soldiers’ relatives and private citizens are working to provide supplies and equipment for troops based near the town to address shortages, including drones, radios and heat-detecting rifle sights.

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