The dollar was little changed at 120.14 yen

Good morning from Hamburg and welcome to our latest Daily FX Report. Asian stocks edged lower and the euro sagged on Tuesday as insufficient progress on talks between debt-strapped Greece and its creditors kept investors on edge. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent. Japan's Nikkei lost 0.3 percent and South Korea's Kospi dipped 0.1 percent. Wall Street shares slipped after the Eurogroup meeting, with the Dow and S&P 500 shedding 0.5 percent each. Meanwhile, China continued to be on investors' radar after Beijing cut interest rates for the third time in six months on Sunday. While the latest easings have generally been welcomed by global investors, concerns remain about the outlook for the world's second-largest economy as it heads for its worst year in a quarter of a century.

However, we wish you a successful trading day!

Market Review – Fundamental Perspective

As euro zone finance ministers met in Brussels to discuss a cash-for-reforms deal with Athens, Greek Finance Minister Yanis Varoufakis said on Monday that a referendum on Greece's bailout is not planned for the time being, and that capital controls have not been considered for the country. The euro was down 0.1 percent at $1.1140. The common currency surged to a two-month high of $1.1392 on Thursday when markets were focused on improving prospects for the European economy and surging euro zone bond yields. The dollar was little changed at 120.14 yen and just added 0.1 percent after climbing modestly overnight as U.S. Treasury yields rose ahead of $64 billion in new debt supply hitting the market this week. The pound was flat on the day at $1.5576, taking a breather after scaling its highest peak of the year against the greenback on Monday, rising as high as $1.5614 in the wake of Prime Minister David Cameron's British election victory. On Monday, the Bank of England kept interest rates steady at a record-low 0.5 pct as expected. On Wednesday, Governor Mark Carney will present a quarterly update to the central bank's forecasts growth and inflation predictions. The New Zealand dollar, battered recently by increasing speculation that the country's central bank would eventually cut rates, hovered near a two-month low of $0.7333. The NZD posted its biggest one-day decline against the U.S. unit since late 2011 on growing expectations that the central bank would cut rates. In commodities, U.S. crude lost 2 cents to $59.23 a barrel on signs of rejuvenation in already bloated U.S. shale supplies.

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 two years ago. According to the indicators, this sideward movement may hold for a while since the both levels seem hard to pass. However, if the pair is able to break through the resistance at 136.66 JPY, we may see a further appreciation of the EUR.

Support & Resistance (Daily)