The USD decreased against most of its major peers

Good morning from Hamburg and welcome to our Daily FX Report for this week. Yesterday U.S. secretary of State John Kerry says the United States and five other major powers are closer than ever to a deal with Iran that would end a 12-year-old nuclear standoff. Talks will be continued to secure a final agreement by a June 30 deadline. Besides that Apple beat profit forecasts yesterday by telling that the company drove profit up 33% in the first three months of 2015 from a year earlier. They reported a $13.6 billion profit, with revenue up 27% to $58 billion.

Anyway, we wish you a great trading day!

Market Review – Fundamental Perspective

Yesterday the Dow Jones Index of shares dropped 0.2 percent and the Standard & Poor’s Index even declined 0.4 percent. Yesterday Greek Prime Minister Alexis Tsipras reshuffled his team handling talks with European and IMF lenders. Finance Minister Yanis Varoufakis has now a less active role in negotiations and deputy foreign Minister Euclid Tsakalotos was appointed coordinator of the group. Besides that according to a poll of money market traders, there is a 40 percent chance Greece will leave the euro zone and over half said the country could stay even if it defaults on its debt payments.
The markets estimated that a report on April 29 will show the American economy grew at its slowest speed in a year. An index of services sector cools slightly in April from a seven-month high in March. But an industry report showed that the pace of hiring in the sector accelerated to its highest since last June. Reading of its Purchasing Managers Index for the services dropped to 57.8 in April from 59.2 in March. A reading over 50 signals expansion in economic activity. The USD decreased against most of its major peers and the EUR/USD rose 0.2 percent to 1.0891. The USD/JPY traded at 119.04. Fitch Ratings Ltd. downgraded Japan by on level A from A+. The EUR bought 129.55 JPY.
After the AUD had dropped to a record low versus the NZD around 1.0021, it climbed again to a one month high at 1.0316 and survived a near-parity experience as the policy divergence between two central banks disappers. Reserve Bank of Australia Governor Glen Stevens said reductions in interest rate may be less effective so they will probably leave it at 2 percent while New Zealands Central Bank still has the developed world’s highest rate of 3.5 percent. But it said that it would consider cuts of benchmark if growth and inflation pressures weaken further.

Technical Analysis

XAG/USD (4 Hours)

After touching a six week high around 17.38, the bears took control of silver and pull it down to a four week low at the support line around 15.66. As a result a steep increase pushed the metal back to the strong resistance level around 16.47 and even above the highest Bollinger band. Nevertheless the Stochastic is supporting the bears so a drop to its primary trend is possible.

Support & Resistance (4 Hours)