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February 17 – A Ukrainian delegation arrived in Geneva, Switzerland, on the 17th to participate in a new round of negotiations involving Ukraine, the United States, and Russia. Russian Presidential Press Secretary Dmitry Peskov said on the 17th that the trilateral talks would continue until the 18th. Sources said the Russian delegation planned to begin talks with the United States and Ukraine at 2:30 PM Moscow time (7:30 PM Beijing time) on the 17th. The talks will mainly cover five areas: territorial, military, political, economic, and security issues.Suzuki launched its first electric vehicle in India on Tuesday, offering customers a battery leasing program to reduce upfront costs.February 17 - Iranian Foreign Ministry spokesman Bagaei, who is participating in the second round of Iran-US talks, said on the sidelines that Iran is maintaining an open attitude and the two sides have discussed the nuclear issue and the lifting of sanctions.On February 17, Li Liang of Douyin Group posted an article stating: "A large number of marketing accounts are systematically hyping up the idea that ByteDance is Hengkes biggest short seller, sophistry by arguing that the coincidence in time is a cause-and-effect relationship. In reality, they are trying to sow discord between the companies and blame the temporary rise and fall of the index caused by multiple factors on the companys launch of competitive products. This is absurd and malicious."According to reports, the Geneva talks on the Ukraine issue will begin in an hour, and some members of the Russian delegation will also arrive at the negotiation venue soon.

Investor attention is on the Fed's minutes as recession fears drive the US Dollar Index towards 107.00

Daniel Rogers

Aug 16, 2022 11:47

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The US Dollar Index (DXY) rises for a third day in a row during Tuesday's Asian session, gaining bids to 106.58. Thus, the greenback's signal captures the market's rush for risk-free assets in response to worries about the US and China's economies as well as worries about geopolitics in the Middle East, China, and Russia. It is noteworthy that aggressive Fed remarks and weaker US data enhance market trepidation and help DXY bulls.

 

Despite this, the DXY bulls closely monitor the gloomy statistics coming out of China and the US, particularly in light of the recession fears.

 

In August, the US NY Empire State Manufacturing Index fell from 11.1 in July to 31.3, below market estimates of 8.5. The August NAHB homebuilder confidence index in the US fell from 55 to 49, the lowest level since the start of 2020.

 

In other news, China's retail sales slowed in July to 2.7% YoY from 3.1% earlier and 5.0% forecast, while industrial production (IP) fell to 3.8% from 3.8% previously and 4.0% market estimates. Additionally, in an effort to counter bearishness, the People's Bank of China (PBOC) shocked the markets on Monday by reducing the rates on its medium-term lending facility (MLF) by 10 basis points (bps).

 

It should be emphasized that news stories about deteriorating coronavirus conditions in Shanghai, China's financial center, and the restart of Russian bond trading on Wall Street did not spur investors' desire to take risks. The Wall Street Journal's (WSJ) rumors of a potential meeting between US Vice President Joe Biden and his Chinese counterpart Xi Jinping may also encourage investors to take more risks. In a similar vein, Chinese President Xi proposed new efforts to revive the second-largest economy in the world.

 

The Pentagon said on Monday that the US, South Korea, and Japan took part in a missile warning and ballistic missile search and tracking exercise last week off the coast of Hawaii. Between August 22 and September 1, the US and South Korea will collaborate on military drills. The DXY rises as a result of the additional stress that geopolitical worries place on market sentiment.

 

The three-day downtrend in US 10-year Treasury yields is around 2.775%, while S&P 500 Futures are down at least 0.13 percent day-to-day.

 

Moving on, the secondary US housing and activity data released today should be of interest to DXY traders ahead of the release of the FOMC Minutes on Wednesday. The dollar's gauge might remain on the bear's radar if US data keep getting worse.

 

The three-week-old resistance line, which is now support at 106.35, would need to be broken for an extended period of time for DXY bulls to hit the monthly high above 107.00. However, in order to approach July's yearly high close to 109, the bulls need confirmation from late July's peak at 107.45.


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