The benchmark S&P raised as high as 1,994.76

Good morning from Hamburg and welcome to our last Daily FX Report for this week. Global equity markets moved higher on Thursday, with the S&P 500 closing at an all-time high, as U.S. and Germany data drove confidence on economic growth and helped extend a stock rally. Data on German private-sector growth reassured investors about the outlook for Europe`s biggest economy a soft patch. The benchmark S&P raised as high as 1,994.76, topping the prior record of 1,991.39 set in late July. The Dow closed up 60.36 points, or 0.36 percent, at 17,039.49 and the Nasdaq Composite added 5.62 points, or 0.12 percent, to 4,532.10.

Anyway, we wish you a successful trading day and a relaxing weekend!

Market Review – Fundamental Perspective

Before Federal Reserve Chair Yellen speaks today at a meeting of central bankers in Wyoming, the USD experienced a decline and fell from the highest in months versus the EUR. The U.S. currency slid 0.2 percent to $1.3281 per EUR after reaching the strongest level since September 2010. The long-term prospects for the USD still looks favorable as economic data is considered to be sound. It was mainly the positive Germany data that helped the EUR to rebound against the USD. The EUR rose 0.16 percent to $1.3279. Against the JPY, the USD was able to gain 0.08 percent to reach 103.85 yen. The EUR climbed 0.3 percent to 137.92 yen. Although U.K. retail sales rose more in July than it has been expected, the GBP weakened to the lowest level since April against the USD. Sales volumes excluding auto fuel increased 0.5. percent from June. Nevertheless, the GBP fell 0.1 percent to $1.6580 after earlier declining to $1.6564.
After a sound development of Norway ́s economy in the second quarter which surpassed the expectations of analysts, Norway`s krone gained the most in more than a week. The krone gained in value versus all of its major counterparts after data showed the nation`s economy grew 1.2 percent in the three months through June. Economist forecast a 0.6 percent growth for the coming quarter. As a result of the data, the krone appreciated 0.6 percent to 8.1642 per EUR, what is the biggest gain since August 11. It also climbed by 0.8 percent to 6.1471 krone per USD.
U.S. cruide rose and Brent pared losses, lifted by the U.S. economic data after a plentiful supply picture. Brent crude for October rose 35 cents to settle at $102.63 a barrel, while U.S. crude rose 51 cents to settle at $93.96 a barrel.

Daily Technical Analysis

EUR/USD (4 Hours)

Our analysis from Monday indicated that the EUR may depreciate versus the USD during this week and this is exactly what happened. Since Monday, we have seen a sharp decline of the EUR versus USD till the pair reached the support level at 1.3242 where it rebounded. It remains to be seen whether the recovery will hold. According to the indicators, we may see a slightly upward movement in the near future.

Support & Resistance (4 Hours)