The dollar held losses against the yen and the euro as investors digestes U.S

Good morning from Hamburg and welcome to our latest Daily FX Report. National Guard troops and police aimed to head off a third night of violence on Wednesday in Ferguson, Missouri, as more than 400 people have been arrested in the St. Louis suburb and around the United States in unrest after a white policeman was cleared in the killing of an unarmed black teenager. There have been protests in Boston, New York, Los Angeles, Dallas, Atlanta and other cities decrying Monday's grand jury decision not to indict officer Darren Wilson in the Aug. 9 shooting death of 18-year-old Michael Brown in a case that has touched off a debate about race relations in the United States.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

The dollar held losses against the yen and the euro as investors digestes U.S. economic data, while the Standard & Poor´s 500 Index climbed to a fresh record ahead of the Thanksgiving holiday. It was steady at 117.70 yen in the morning, following a second day of declines in the Bloomberg Dollar Spot Index. Jobless claims rose to an almost three-month high, demand for capital goods unexpectedly fell and new homes sold at a slower pace than forecast, according to data in the U.S., where equity volumes were about 21 percent below the 30-day average. Oil ministers from the 12 Organization of Petroleum Exporting Countries meet today in Vienna. Saudi Arabia said sliding prices will stabilize on their own after Venezuela, Saudi Arabia, Mexico and Russia failed this week to agree to an a supply cut. The group, which pumps about 40 percent of the world´s oil, will discuss its official production target of 30 million barrels a day at the meeting today. Crude has collapsed into a bear market amid the hghest U.S. oil output in three decades and signs of slowing demand globally. WTI crude for January delivery fell to $73.69 a barrel in New York last session, its lowest settlement since Sept. 21, 2010. Prices have tumbled 25 percent this year.

U.S. equity and bond markets are closed today for the Thanksgiving holiday, and trading is shortened Nov. 28. The Dow gained 0.1 percent to 17,827.75 yesterday after falling less than 0.1 percent the day before. The Nasdaq 100 Index of technology shares climbed 0.7 percent to its highest level since March 2000. The euro was little changed at $1.250 after climbing 0.3 percent yesterday in a third straight day of gains.

Daily Technical Analysis

EUR/GBP (Daily)

Since the middle of March 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. Recently it touched the third resistance level. It tried several times to break through the resistance level 0.8038, but dropped back. Looking at the Stochastic one can see that it moves above the 20-line toward the Center line, signaling that wins are possible.

Support & Resistance (Daily)