Good morning from Hamburg and welcome to our latest Daily FX Report. The Syrian army advanced toward the Turkish border on Monday in a major offensive backed by Russia and Iran that rebels say now threatens the future of their nearly five-year-old insurrection against President Bashar al-Assad. Iranian backed-militias played a key role on the ground as Russian jets intensified what rebels call a scorched earth policy that has allowed the military back into the strategic northern area for the first time in more than two years. The Russian-backed Syrian government advance over recent days amounts to one of the biggest shifts in momentum of the war, helping to torpedo the first peace talks for two years, which collapsed last week before they had begun in earnest.
Anyway, we wish you a successful trading day!
Market Review – Fundamental Perspective
Stock indexes worldwide tumbled on Monday, led by banking stocks in Europe and technology stocks on Wall Street on persisting fears of a global economic slowdown. Wall Street continued Friday's technology-led selloff, with the benchmark S&P 500 stock index falling as much as 2.5 percent. The Dow Jones industrial average closed down 177.92 points, or 1.1 percent, at 16,027.05 and the Nasdaq Composite dropped 79.39 points, or 1.82 percent, to 4,283.75. U.S. crude prices fell after a meeting between Saudi Arabia and Venezuela failed to reassure investors of measures to bolster sagging prices. U.S. crude was last down 71 cents, or 2.3 percent, at $30.18 per barrel. The dollar fell to its lowest level against the yen since Nov. 2014 of 115.170 yen , partly on doubts about the effectiveness of the Bank of Japan's negative interest rate policy. Safe-haven spot gold XAU= reached a peak of $1,200.60 an ounce, its strongest since June 22. An increasingly important gauge of U.S. inflation tumbled last month to its lowest level since the Federal Reserve Bank of New York began the survey in mid-2013, in what could be taken as another warning bell for the U.S. central bank. The New York Fed's survey of consumers found expectations for inflation one and three years in the future fell as Americans were more cognizant of lower gasoline prices and costs of medical care and college. The Fed raised rates in December and aims to keep tightening. But a market selloff in January and worries over a global slowdown has some Fed officials worried that inflation, at 1.4 percent now according to their preferred measure, will not rebound as soon as desired.
Daily Technical Analysis
EUR/USD (Daily)
One of the most important currency pairs worldwide is held under control of the bears. It doesn’t seem to be a stable long term support line, as this pair is highly influenced by economic world data and now especially by the QE program from ECB and the Chinese worries. The current support level at 1.0565 could stop the fall. The price is moving upward now. Looking long term further losses might occur.
Support & Resistance (Daily)
Support Levels around | Resistance Levels around |
1.0565 | 1.1215 |
N/A | 1.1444 |
N/A | N/A |
GBP/JPY (Weekly)
Looking long-term since 2012 the bulls have pushed this pair steadily upwards. The economic situation in Japan has weakened the JPY versus its major peers. Although the current situation with Crude Oil helps the JPY to gain some strength. The yen is seen now as a safe-haven currency. It could break the long term support at 169.24, so further losses might occur. The OsMA and the RSI are showing that the pair might be highly interesting for sellers.
Support & Resistance (Weekly)
Support Levels around | Resistance Levels around |
148.25 | 174.76 |
119.36 | 195.26 |
N/A | N/A |
This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational purposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.