The USD was up 0.88 percent against the yen at 120.15 yen

Good morning from Hamburg and welcome to our latest Daily FX Report. U.S. stocks climbed more than 1 percent on Monday, rebounding from a sharp decline last week, helped by deal activity in healthcare and a bounce in energy shares. Also boosting investors' risk appetite, Chinese stocks surged to seven-year highs, helped by hopes for more infrastructure spending and monetary policy easing. The Dow registered its biggest daily percentage gain since Feb. 3 and all 10 primary S&P 500 sectors rose on the day, led by energy, which jumped 2.1 percent despite a slight decline in Brent and U.S. oil prices. Germany's DAX index rose 1.8 percent, to about 1 percent below its all-time high, while the FTSEurofirst index of 300 leading European companies gained 1.18 percent to close at 1,596.31. MSCI's all-country world index rose 0.75 percent, while its emerging markets index gained 1.16 percent.

However, we wish you a successful trading day!

Market Review – Fundamental Perspective

billion euro aid package before it runs out of cash in three weeks. The single currency was down 0.71 percent against the dollar at $1.0810, bringing its quarterly decline to about 10.6 percent, the largest fall by a quarter since the euro took effect in 1999. The euro fared better versus the yen, up 0.2 percent at 129.94 yen. The dollar on the other side rebounded after comments late Friday from Fed Chair Janet Yellen underscored the view that the U.S. central bank is likely to start raising rates gradually later this year. The dollar index, a gauge of the dollar`s value against a basket of currencies, climbed 0.77 percent to 98.042 after back-to-back weeks of losses. The USD was up 0.88 percent against the yen at 120.15 yen. U.S. jobs data on Friday will be the key event this week. A robust report could see investors position for tighter monetary policy sooner rather than later. The Canadian dollar extended losses against a rebounding USD on Monday, as oil prices fell and as investors looked ahead to domestic data later this week. The Canadian dollar finished the session at C$1.2693 to the U.S. dollar, or 78.78 U.S. cents, weaker than Friday's close of C$1.26, or 79.37 U.S. cents. Oil prices slipped as officials from Iran and six world powers discussed a possible deal over Tehran's nuclear program that could end sanctions and allow an increase in Iranian oil exports. Brent crude fell 12 cents to settle at $56.29 a barrel. U.S. crude settled down 19 cents at $48.68 a barrel.

Daily Technical Analysis

EUR/JPY (Daily)

After touching the resistance level at 149.77, the bears took control over this currency pair and the EUR highly lost in value versus the JPY. At the moment the pair is traded between its first resistance level at 136.66 and its first support level at 127.34, which we have already seen around 2 years ago. According to the indicators, this sideward movement may hold for a while since the both levels seem hard to pass. A sideward movement between the first support and the first resistance line may therefore be likely over the course of the next trading sessions.

Support & Resistance (Daily)