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August 23 - According to the website of the China Maritime Safety Administration, the Zhanjiang Maritime Safety Administration issued a navigation warning that live-fire exercises will be conducted in parts of the South China Sea from 8:00 to 18:00 daily from August 24 to 28, and entry is prohibited.Conflict Situation: 1. According to Saudi media Hadas: Israel conducted airstrikes between the towns of Salbin and Rashaf in southern Lebanon. 2. Israel Defense Forces: The Israel Defense Forces recently opened fire on a terrorist preparing for a terrorist attack in southern Syria. 3. According to Saudi media Hadas: Military sources stated that the Yemeni National Resistance Navy destroyed a Houthi speedboat loaded with explosives in the Bab el-Mandeb Strait. Strait of Hormuz: 1. A Turkish merchant ship was attacked in the Black Sea, resulting in 1 death and 8 injuries. 2. Iranian media: Iran has decided to allow some Iraqi oil tankers to pass through the Strait of Hormuz. 3. US Energy Secretary: Oil flows smoothly through the Strait of Hormuz due to the protection of the US Navy. 4. Axios, citing US officials, reported that approximately 16 million barrels of oil left the southern route of the Strait of Hormuz on Friday night. Other Matters: 1. Iran: Defense equipment production doubled overall in the past year. 2. Iran: The United States has declined and no longer possesses international prestige. 3. Repair work at Irans South Pars No. 14 oil refinery is 70% complete. 4. Iranian Foreign Ministry: The new US sanctions against Iran have no basis in international law. 5. Iranian official: Any country involved in economic restrictions against Iran is considered an enemy. 6. Israeli Defense Minister: Turkey intends to conduct activities at Syrian bases that endanger Israeli security. 7. Palestinian Vice President: The decision to hold legislative elections next November will not change. 8. Israel: Israel says it has no intention of escalating the conflict with Turkey and will never accept Turkish troops stationed in Syria. 9. Senior Iranian security official: Trumps reckless behavior has spurred countries to desire nuclear weapons. 10. Iranian Parliament Speaker Ghalibaf: Iran has received information from neighboring countries regarding the establishment of "new security arrangements and economic cooperation." 11. Secretary of Irans Supreme National Security Council Rezaei: Iran will strike at the interests of countries that assist the US in waging economic war against Iran. 12. Japanese Foreign Minister: Many challenges remain regarding the Iranian issue. I had in-depth discussions with the Saudi minister on a range of issues, including urging the US and Iran to resume negotiations as soon as possible, creating a favorable environment for reaching a final agreement, and ensuring free and safe navigation in the Strait of Hormuz and the Bab el-Mandeb Strait. We will further deepen our cooperation in the future.Conflict Update: 1. Putin stated that Russian forces have intensified their crackdown on Ukrainian businesses. 2. Ukraine attacked a Russian logistics center, causing a fire. 3. According to TASS, Russian President Putin stated that Ukraines attacks on economic targets have opened a "Pandoras box." 4. The Russian Ministry of Defense reported on the 21st that Russian forces continued their strikes against ports and vessels serving the interests of the Ukrainian armed forces. The report stated that Russian drones struck a military warehouse in the port of Leny; a Ukrainian naval patrol boat in the port of Chernomorsk; and port infrastructure used for storing military supplies in the southern port. Additionally, Russian forces seized control of a settlement in the Donetsk region. 5. Ukrainian President Zelenskyy posted on social media on the 21st that Ukrainian forces launched a long-range strike early that morning, hitting two important Russian targets: an oil refinery and a military airport. Ukraine also stated that it had achieved results on the Black Sea front, but did not disclose specific targets or damage levels. 6. A Ukrainian drone strike on a warehouse belonging to Russian online retailer Ozon killed at least 10 people. Other developments: 1. Russia is reportedly considering purchasing grain to offset the impact of export disruptions. 2. Indian Ministry of External Affairs: Indian External Affairs Minister S. Jaishankar will pay an official visit to Russia from August 23 to 24. 3. Ukrainian President Zelensky: Discussed the air defense shortage with French President Macron, and Macron agreed to expedite the delivery of the latest French equipment.On August 23, according to Iranian sources on August 22, Iranian Defense Ministry spokesman Reza Tarai-nik stated in an interview that Irans overall weapons and defense equipment production has doubled over the past year. Production of some strategic equipment prioritized for wartime deployment has even more than tripled. To maintain military secrecy, some equipment systems have not yet been publicly displayed. He also stated that if the enemy makes another foolish mistake, it will face an even greater defeat.August 23 - Following the 5.8 magnitude earthquake that struck Honshu, Japan, numerous injuries have been reported. As of 4:00 AM local time, nine people were injured in Saitama Prefecture, and as of 5:00 AM local time, three people were injured in Kanagawa Prefecture. Additionally, some people in Tokyo sustained cuts from broken glass. According to the Tokyo Fire Department, approximately 30 earthquake-related calls had been received as of 3:00 AM local time on the 23rd.

USD/CHF Steady at 1.0020 as DXY Pauses, Powell and US Retail Sales Take Center Stage

Daniel Rogers

May 16, 2022 10:46

The USD/CHF pair is bouncing within a small range between 1.0020 and 1.0030 in early Tokyo, as the US dollar index (DXY) is not gaining much traction due to Monday's light economic calendar. Although broad-based fundamentals continue to favor the dollar bulls, the Federal Reserve (Fed) is projected to raise interest rates by another significant number in June in an effort to limit the inflation issue.

 

Last week, Fed's Powell's interview with the national radio show Marketplace revealed the ongoing conversations among Fed policymakers regarding anticipated rate hikes in monetary policies. Fed Powell indicated that the Fed could declare two additional rate hikes in the next two consecutive monetary policy sessions in order to tame the soaring inflation.

 

In the meantime, the US dollar index (DXY) is poised between 104.46 and 104.60 after reaching a new 19-year high of 105.00 on Friday. The DXY appreciates the broader gains but requires further triggers to maintain strong. In the future, two significant events on Tuesday will keep investors occupied. First will be Fed Chairman Powell's speech, which will likely influence monetary policy action in June. The second significant event is the monthly US Retail Sales report, which is anticipated to increase by 0.7% from the previous reading of 0.5%.

 

In terms of the Swiss franc, Friday's Industrial Production data will be the focal point. The catalyst reached 7.3% the previous time. A greater-than-anticipated number will strengthen the Swiss franc against the U.S. dollar. 

USD/CHF

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