The JPY shrank 0.4 percent in the last month

Good morning from cloudy Hamburg and welcome to our second Daily FX Report in this week. Yesterday unidentified snipers opened fire on a convoy of UN experts investigating suspected chemical weapons attack in Syria. Beyond that US Secretary of State John Kerry said that chemical attack by the Syrian government was undeniable.

Anyway, we wish you a great trading day!

Market Review – Fundamental Perspective

Yesterday, the U.S. Secretary of State emphasized that the use of chemical weapons against their own people by the Syrian government will be resulting in consequences. Median reports kept signs that the UN experts were able to collect a range of data regarding incident last week. Therefore an intervention by the U.S. government becomes increasingly probable. But speakers of the U.S. government expressed that President Obama has not taken any definite decision whether a military action might follow. As a result, fears grew that the oil supplies from this region might be affected and prices for crude oil climbed 0.5 percent to 106.43 USD per barrel, while Standard & Poor’s 500 Index futures fell 0.2 percent.
Besides oil, also the JPY benefited from the rising demand for so-called haven assets as Asian shares as well as shares of emerging markets declined and advanced against nearly all of its most traded counterparts. The USD/JPY dropped 0.3 percent and was at 98.24 from the day before as it has rallied 0.2 percent, while also the EUR decreased 0.2 percent against the JPY to 131.46 following yesterday’s 0.3 percent losses. Meanwhile, the USD remained nearly unchanged at 1.3375 versus the EUR.
Today, the Ifo institute will release a range of important figures of the current state of the German economic. Germany is the biggest business in Europe and is also called the engine of the economy of the euro zone. According to median estimates by Bloomberg news, the business confidence might expand the fourth month in a row and also the institute’s business climate index, which is based on a gauge among 7,000 executives, probably succeeded to appreciate to 107.0 compared to 106.2 in July. The 17 nation’s currency added 0.5 percent towards its U.S. counterpart in August, the best performance followed by the GBP. In the same time, the JPY shrank 0.4 percent in the last month.

Daily Technical Analysis

XAG/USD (4 Hours)

At the strong support around 19.66, the bulls had gained new power and in succession they boosted the rate up by entering an Andrew’s pitchfork. So far, all previous levels were too weak to stop a continuation of the rise. Currently, we see silver approaching its lower pitchfork line by trading along the support around 23.88, while MACD and Stochastic are backing additional wins. In addition, the Bollinger bands are widening again, a sign for an upcoming strong movement.

Support & Resistance (4 Hours)