The currency climbed for a third day

Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week. Investors who stayed bullish on industrial metals are finally being rewarded as renewed optimism for the demand outlook spurred the biggest price rally in more than two years. In the U.S., economic growth last quarter exceeded all forecasts in a Bloomberg survey, while in China stocks rebounded to halt a five-day rout. Zinc surged the most since June 2012, copper climbed more than 4 percent and aluminum and nickel advanced. The countries are the world’s biggest metals consumers. The Bloomberg Industrial Metals Subindex jumped as much as 4 percent on Thursday, the biggest intraday gain since May 2013. The gains are helping the measure to recover after tumbling 16 percent over the past three months, the steepest loss since 2011. Prices also climbed on signs that miners will start cutting back output, helping to alleviate concerns about oversupply.

Anyway, we wish you a successful trading day and a relaxing weekend!

Market Review – Fundamental Perspective

The dollar rose to a one-week high as U.S. growth and employment readings fueled optimism about the economy. The currency climbed for a third day as stocks rallied after a report showed U.S. gross domestic product rose at a 3.7 percent annualized rate in the second quarter, exceeding all estimates of economists surveyed by Bloomberg. Filings for jobless benefits dropped to a three-week low. The greenback climbed 0.6 percent to $1.1246 against the euro and advanced 0.9 percent to 121.03 yen at 5 p.m. in New York. The Bloomberg Dollar Spot Index gained 0.2 percent to 1,205.59, the highest in a week on an intraday basis. Traders are pricing in a 28 percent probability that the Federal Reserve will raise interest rates at its September meeting, based on the assumption that the effective fed funds rate will average 0.375 percent after the first increase. That’s up from 24 percent Wednesday but down from 48 percent on Aug. 18. China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter. The yuan rose 0.08 percent to 6.4053 per dollar on Thursday in Shanghai, trimming this month’s decline to 3.1 percent. Daily fluctuations have averaged less than 0.1 percent in the past two weeks as the PBOC intervened to bring stability following the Aug. 11 devaluation.

Daily Technical Analysis

Par.FCE (Weekly)

After the sharp sell-off for more than two weeks the french index started a strong recovery this week. The index future touched the downward trend line in addition to the moving average 200. It seems to be possible that more bulls get into the market and push the value close to the important level around 5000 points. Fundamental data should be considered to invest money long term.

Support & Resistance (Weekly)