Brent crude rose about 0.1 percent to $65.57 a barrel

Good morning from Hamburg and welcome to our latest Daily FX Report. Time Warner Cable Inc is nearing an agreement to be acquired by smaller peer Charter Communications Inc for about $55 billion, combining the second and third largest U.S. cable operators, people familiar with the matter said on Monday. A deal would create a major rival to Comcast Corp, the biggest operator in the U.S. cable and broadband market, and marks a triumph for Charter, which was rejected by Time Warner Cable just last year. News of another potential merger comes as the traditional pay television industry faces stagnating growth and new competition from over-the- web rivals offering individual services, like Netflix, or packages of channels, such as Sony.

However, we wish you a successful trading day!

Market Review – Fundamental Perspective

The dollar hit a one-month high against a basket of major currencies on Monday in the wake of Friday's comments from Federal Reserve Chair Janet Yellen, who rekindled market expectations that the central bank was gearing up to hike interest rates. The dollar index rose as high as 96.475 on Monday, after Yellen said she expected economic data to strengthen and noted that some of the U.S. economy's weakness at the start of the year might be due to "statistical noise."
The dollar was slightly higher against the Japanese currency at 121.60 yen after rising as high as 121.78 yen on Monday, its highest since March 10. The USD held its ground versus commodity currencies such as the Australian dollar, which hovered just above a three-week low of $0.7804 set on Monday.
Greece's ongoing debt crisis kept pressure on the euro. Time is running out for Greece to reach an agreement on reform with lenders and there will be no further funds for Athens without it. The ECB's stance, along with ongoing worries about Greece, should keep the euro pressured against the greenback, traders said. The common currency last stood at $1.0979, having in the last few days retreated from a high of $1.1468. With little in the way of major economic releases in Asia on Tuesday, chances are high that the currency market will remain sluggish until the flow of U.S. data resumes. Durable goods orders will be among those on offer. Crude oil edged up, after marking gains in Monday's thinned trading as firm global demand offset the effects of a stronger dollar. Brent crude rose about 0.1 percent to $65.57 a barrel, while U.S. crude added 0.2 percent to $59.86.

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 pretty 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)

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