The dollar, on a downtrend since the start of May

Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week. A U.S. spying program that systematically collects millions of Americans' phone records is illegal, a federal appeals court ruled on Thursday, putting pressure on Congress to quickly decide whether to replace or end the controversial anti-terrorism surveillance. Ruling on a program revealed by former government security contractor Edward Snowden, the 2nd U.S. Circuit Court of Appeals in Manhattan said the Patriot Act did not authorize the National Security Agency to collect Americans' calling records in bulk. Circuit Judge Gerard Lynch wrote for a three-judge panel that Section 215, which addresses the FBI's ability to gather business records, could not be interpreted to have permitted the NSA to collect a "staggering" amount of phone records, contrary to claims by the Bush and Obama administrations.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

The number of Americans filing new claims for unemployment benefits held near a 15-year low last week in a sign that the labor market was strengthening despite moderate economic growth. Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 265,000 for the week ended May 2, the Labor Department said on Thursday. That was well below the increase to 280,000 that economists had forecast. Claims for the prior week were unrevised at 262,000, which was the lowest reading since April 2000. The sustained strength suggests March's sharp step down in job growth was likely an aberration, and could keep the Federal Reserve on track to raise interest rates this year. Claims, which remained below the key 300,000 threshold for a ninth straight week, are one of the timely indicators of the health of the U.S. economy. At current levels, they suggest positive momentum in the economy, even though growth stumbled badly last quarter. Oil prices tumbled 3 percent on Thursday as a resurgent dollar erased gains from the past two sessions, setting the market up for its first weekly loss in five.Traders and investors also returned their focus to the oversupply in crude and gasoline after Wednesday's euphoria over the first U.S. crude drawdown in months. The dollar, on a downtrend since the start of May, jumped on optimism that Friday's U.S. employment report for April would show strength after upbeat weekly jobless claims. A stronger dollar makes dollar-denominated commodities less affordable for holders of the euro and other currencies.

Daily Technical Analysis

EUR/CAD (Daily)

The European currency was strong over 2 years but at the level around 1.550 the bears took the control. As against the most important currencies the euro began its fall and almost the whole 2014 it depreciated against the CAD. Not even the suppor level at 1.3369 could stop the fall, but the level around 1.3064. Currently it is moving downward. The Momentum is showing that possible losses might occur. As inverse S+H+S pattern appears, signaling that longterm the price might fall.

Support & Resistance (Daily)