U.S. currency rose 0.5 percent to $1.1094 per euro

Good morning from beautiful Hamburg and welcome to our latest Daily FX Report. The European Central Bank approved the smallest rise in emergency cash for Greek lenders since tensions re-emerged in February, in a sign that deposit outflows may be easing as political talks on the nation’s finances improve. At a meeting in Frankfurt on Wednesday, the Governing Council consented to a 200 million-euro ($222 million) rise in the cap on Emergency Liquidity Assistance to 80.2 billion euros, people familiar with the discussion said. No decision was taken to alter the discounts applied to the collateral pledged for the Bank of Greece loans, the people said, asking not to be named as the matter isn’t public. Spokesmen for the ECB and the Bank of Greece declined to comment.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

The United States dollar rose against the euro as minutes from the Federal Reserve’s last meeting bolstered bets the U.S. will tighten monetary policy before central-bank officials in Europe. The greenback traded close to the highest level in three weeks versus the shared currency as the release showed Fed policy makers expect the American economy to rebound from a first-quarter slowdown, while indicating a June rate increase is unlikely. The gains come after the European Central Bank reaffirmed its commitment to quantitative easing. The U.S. currency rose 0.5 percent to $1.1094 per euro as of 5 p.m. in New York. The dollar climbed 0.6 percent to 121.35 yen, touching 121.48, a two-month high. The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major trading partners, added 0.1 percent to 1171.98. The dollar has rallied against all of its major peers this week after a slew of weaker-than-forecast data prompted a two-month selloff that left the currency near its cheapest in four months. Investors who pared wagers on the currency to the least since September are now weighing whether the time is right to re-establish those bets. Chair Janet Yellen will give traders another chance to gauge the Fed’s rate outlook when she speaks in Providence, Rhode Island, on May 22. Japan’s central bank starts a two-day policy meeting on Thursday. While economists from Goldman Sachs Group Inc. to Credit Agricole SA delayed their calls on an expansion in the nation’s monetary stimulus, the largest number still sees a boost by the end of October, a survey by Bloomberg shows.

Daily Technical Analysis

EUR/JPY (4 Hours)

In April the euro gained versus the Japanese yen. Slightly below the level of 137 the major pair started to correct it’s climb. The MACD indicator shows at the moment bear’s power it might be also possible that the price can continue the rallye. The price is very close to the next three support lines which should be considered.

Support & Resistance (4 Hours)