The euro is up 0.9 percent and the yen has gained 1.6 percent

Good morning from Hamburg and welcome to our Daily FX Report. Ebay Inc trimmed its fullyear revenue forecast on Wednesday, signaling a weaker-than-expected holiday shopping season for the e-commerce company as it prepares to split from its fast-growing payments arm, PayPal. EBay shares fell more than 3 percent in after-hours trading. President Vladimir Putin warned Washington that a spat between nuclear powers over the Ukraine crisis could threaten global stability and said in remarks published on Wednesday that Russia would not be "blackmailed" by sanctions.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

The dollar has a high risk of falling versus the yen and adding to its biggest slide in six months. The yen climbed for a sixth day against a basket of nine peers as futures signaled Asian stocks will drop after the Standard & Poor´s 500 Index touched a six-month low yesterday. The Australian dollar fell on speculation yesterday´s 1.3 percent advance was unwarranted. The dollar was little changed at 106.01 yen after dropping 1.1 percent yesterday, the biggest loss since April 8. It rose 0.1 percent to $1.2825 per euro after weakening 1.4 percent yesterday. Japan´s currency was at 135.94 per euro.

Speculation the Fed will raise rates next year as the economy improves had led to a record rally in the U.S. currency. The advance started to reverse last week after minutes of Federal Open Market Committee meeting showed participants said growth “might be slower than they expected if foreign economic growth came in weaker than anticipated.” Officials also expressed concern about “further appreciation of the dollar.” The dolar has depreciated 0.3 percent in the past week, according to Bloomberg Correlation Weighted Indexes, which track 10 developednation currencies. The euro is up 0.9 percent and the yen has gained 1.6 percent, the best performer. The global economy faces its biggest test of confidence since the European sovereign debt crisis as investors fear it´s running out of engines. The worry is that five years since the world limped out of recession, central banks have virtually exhausted their stimulus arsenals if activity keeps fading. Japan and the euro area are throwing up fresh signs of weakness by the day and China is dragging instead of driving growth.

Daily Technical Analysis

EUR/GBP (Daily)

Since the mid of August this currency pair is experiencing a storng control of the bears as it is falling below an downward Fibonacci fan. It could break through the first resistance line (38.2) twice but couldn’t strengthen its position and dropped back below it. It tried several times to break through the resistance level 0.8038 Looking at the Stochastic one can see that it moves above the 80-line signaling that the currency pair is at the moment overbought.

Support & Resistance (Daily)