The Turkish lira gain 0.1 percent to 2.1438 against the US dollar

Good morning from a sunny Hamburg and welcome to our first Daily FX Report for this week. Recep Tayyip Erdogan, the prime minister of Turkey, has won the country’s first direct presidential election in the first round after taking more than 50 percent of the votes, according to the Turkey’s election board. This marks a continuation of Erdogan’s more than 10-year rule over the country and the vote itself has been seen as a milestone in Turkish politics since popular vote have been used for the first time in the country’s history.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

International markets have been under pressure as crisis have emerged last months. Especially the Ukraine civil crisis which has led to a diplomatic conflict between Western countries (E.U. and U.S.A.) and Russia, the war between Israel and Palestina, the rise of the I.S.I.S in Irak and the decision of Barack Obama to enter this military conflict have sprayed uncertainty all over the financial markets.

In fact those crisis also have a direct effect besides increasing skepticism. The DAX has fallen more than 10 percent from its July record high, the inflation level in the euro zone dropped to 0.4 percent and the European Central Banks President Mario Draghi has already cautioned against the further potential effects of this tensions.

Furthermore the yen has fallen against most of its peers as concerns about the tension in Ukraine continued. The USD/JPY fell 0.1 percent to 102.11 per dollar and the EUR/JPY reached 136.81 which market a slight decrease.

The Turkish lira gain 0.1 percent to 2.1438 against the US dollar. Nevertheless according to the official Bloomberg analysis, in the past year, it’s the fourth-worst performer among major currencies, depreciating about 10 percent.

Finally the euro has fallen against most of its counterparties. Because of strong sceptisicsm on the ability of the euro zone to overcome economical as well as political issues. The EUR/NZD has fallen 0.143 percent to 1.5824 and the EUR/AUD has fallen 0.146 percent to 1.4437.

Daily Technical Analysis

EUR/USD (4 Hours)

After reaching the first resistance line at 1.3699 this pair seems to have entered a bearish trend along the Fibonacci-Fan. Eventhough it was able to cross the first Fibonacci line and to reach the second one, the bearish movement seems to have continued and might go on further. The Momentum might support this hypothese and crossing the support level at 1.33324 could be a signal that this trend persists.

Support & Resistance (4 Hours)