Japan's currency fell 0.2 percent to 119.18 per dollar

Good morning from Hamburg and welcome to our last Daily FX Report. After a weekend shipwreck off the coast of Italy that may have killed hundreds of migrants, the International Organization for Migrants said yesterday that there may be three more migrant boats in distress in international waters, according to a post on the group's official Twitter account. Authorities still don't know the fate of many of the passengers, including children, who were on the large ship bound from Libya to Europe that capsized Saturday night in the frigid waters of the Mediterranean Sea. That sinking may be in which migrants have lost their lives on vessels that are too rickety to survive long voyages. Already this year, more than 900 migrants are believed to have died while crossing the Mediterranean, far more than during the same period in 2014.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

The euro declined, ending a four-day rally against the dollar, as European leaders wrangled with a defiant Greece about how to avoid a default and secure financing. The single currency dropped versus most of its major peers as Greek Prime Minister, Alexis Tsipras ordered local governments to move their funds to the central bank based on needs for cash for salaries, pensions and a repayment to the International, Monetary Fund. At the moment, Greece and the crude oil prices are the two main catalysts able to move the different markets in one or other direction. The single currency slipped 0.6 percent to $1.0738 at 5 p.m. in New York, following a 2.3 percent advance during the previous four days, the longest winning run since April last year. It declined also 0.4 percent to 127.95 yen. Japan’s currency fell 0.2 percent to 119.18 per dollar, which had a positive day once the president of the Federal Reserve Bank of New York, Mr. Dudley said he is relatively optimistic that a rebound in U.S. growth will support the decision to raise interest rates later this year. Regarding the Aussie, the Australian Central bank Governor Mr. Stevens said yesterday that cuts in the benchmark interest rate remain possible and the nation’s currency is very likely to fall further. The Australian dollar has fallen about 11 percent against the U.S. dollar in the past six months as the price of iron ore, the nation’s key export, slumped in response to increased supply and weaker demand from China. The Canadian dollar, rose on Monday against almost of its major peers, and as much as0.5 percent against the U.S. dollar, as Central bank forecasted that growth will accelerate in the second half of the year.

Daily Technical Analysis

GBPUSD (Daily)

As we can see in the chart below, the GBPUSD has reached a significant resistance, after seven days of gains in a row. This level coincides with the top side of an uptrend channel in the RSI, anticipating a bearish movement, where the previous lows seem the support to take into consideration. Above the current price, the mentioned 1.4980 resistance looks tough to be broken at first.

Support & Resistance (Daily)