The S&P 500 climbed 1.83 percent to 1,948.85

Good morning from Hamburg and welcome to our latest Daily FX Report. Hundreds of migrants poured overnight onto the high-speed railway linking Paris with London near the French port of Calais, stranding passengers in darkness aboard Eurostar trains. Thousands of miles away, the bodies of other migrants washed up on a Turkish beach. Photos of a drowned toddler face down in the surf spread quickly across the Internet, yet another searing image from Europe's worst migration crisis since the 1990s Balkan wars. Outside a Budapest train station, an angry crowd camped out demanding to board trains for Germany, as Europe's asylum system crumbled under the strain of the influx. Hundreds of thousands of refugees fleeing wars, as well as economic migrants escaping poverty, have arrived in the European Union, confounding EU leaders and feeding the rise of right wing populists.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

U.S. labor markets were tight enough to fuel small wage gains in some professions in recent weeks, though some companies already felt a chill from an economic slowdown in China, the Fed said. Overall, U.S. economic activity continued to expand across most regions and sectors from July to mid-August, the Fed said in its Beige Book report of anecdotal information on business activity collected from contacts nationwide. The combination of more demand for workers and worries about Chinese economic growth underscores the challenge faced by the Fed at a Sept 16-17 meeting where it may decide to raise interest rates for the first time since 2006. While many Fed policymakers think the U.S. labor market is close to full strength, China is casting a long shadow on the global economy. Prospects of slower global growth are weighing on oil prices, making it likely the Fed will undershoot its 2 percent inflation target for some time. U.S. investors have weathered over two weeks of unusually wide-swinging trade that has left the S&P 500 with its worst monthly drop in three years and a loss of 8.5 percent from an all-time high in May. The Dow Jones industrial average jumped 1.82 percent to end at 16,351.31 points. The S&P 500 climbed 1.83 percent to 1,948.85 and the Nasdaq Composite surged 2.46 percent to 4,749.98. Concerns about China's economy pushed major U.S. indexes down almost 3 percent on Tuesday and intensified fears of a long-term selloff.

Daily Technical Analysis

EUR/GBP (Daily)

Since January 2014 this currency pair is experiencing a strong control of the bears as it is falling below an downward Fibonacci fan. It could touch the third resistance line (61.8) two times but couldn’t strengthen its position and dropped back below it. The support line around 0.7063 was broken once and doesn’t seem reliable any more. Nevertheless looking at the Stochastic one can see that it moves above the Center line, signaling that some wins might be possible.

Support & Resistance (Daily)