Thursday Briefing: From DXY to Russia – Ukraine Conflicts; June 02, 2022

US Dollar Index Overview

• The DXY remains slightly volatile after lower than expected ADP Non Farm Employment Change data and stabilizes above 102.00 mark.
• The intraday high is 102.61 and low at 102.12 mark.
• A day Chart with triple EMA and H1 chart suggest bullish trend for the time being.
• Immediate hurdles are seen at 102.32 to 101.98 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:

• People in Taiwan are taking shooting lessons for the first time in their lives as Russia’s invasion of Ukraine ratchets up anxiety at the prospect of giant neighbour China making a similar move on the democratic island – Reuters.
• The World Health Organization has cast doubts on North Korea’s claims of progress in the fight against a COVID-19 outbreak, saying it believes the situation is getting worse, not better, amid an absence of independent data – Reuters.
• Uganda and the Democratic Republic of Congo have extended a joint military operation launched late last year against Islamist insurgents in east Congo, the operation’s spokesperson said – Reuters.
• Oil prices fell today as investors cashed in on a recent rally ahead of a key producers meeting later in the day, with some speculation that Saudi Arabia may boost oil production in response to urging by the United States – Reuters.
• China’s Zhejiang Geely Holding Group conducted its first successful satellite launch on Wednesday, sending nine into low earth orbit as it builds out a satellite network to provide more accurate navigation for autonomous vehicles – Reuters.

Latest updates on Russia – Ukraine Conflicts:

• Russian forces were attempting to extend and consolidate their hold on Ukraine’s industrial city of Sievierodonetsk today, edging closer to claiming a big prize in their offensive in the eastern Donbas region – Reuters.
• Russia’s failure to pay $1.9 million in accrued interest on a dollar bond will trigger payouts potentially worth billions of dollars, a panel of investors have determined, as the country teeters on its first major external debt default in over a century – Reuters.
• Former German Chancellor Angela Merkel expressed solidarity for Ukraine in what she described as a “barbaric war” with Russia at an event, after months of silence prompted criticism of her own policy towards Moscow – Reuters.
• U.S. President Joe Biden announced on Wednesday a new $700 million weapons package for Ukraine that will include high mobility artillery rocket systems, which can accurately hit targets as far away as 80 km (50 miles). Russia accused the United States of adding “fuel to the fire”. – Reuters.
• The U.S. plans to sell Ukraine four MQ-1C Gray Eagle drones that can be armed with Hellfire missiles for battlefield use against Russia – Reuters.

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

Take a look and do trade wisely!
Good Luck