The yen lost 0.7 percent last week

Good morning from Hamburg and welcome to our first Daily FX Report for this week. Indonesia was set to resume at first light the search for an AirAsia plane carrying 162 people from the Indonesian city of Surabaya to Singapore, which went missing on Sunday just after the pilot requested a change in course to avoid bad weather. "We are deeply shocked and saddened by this incident," said Indonesia AirAsia Chief Executive Sunu Widyatmoko. "We are cooperating with the relevant authorities to the fullest extent to determine the cause of this incident."The carrier is 49 percent owned by Malaysia-based budget carrier Air Asia. The AirAsia group, including affiliates in Thailand, the Philippines and India, has not suffered a crash since its Malaysian budget operations began in 2002.

Anyway, we wish you a successful trading week!

Market Review – Fundamental Perspective

Trading in Australia, New Zealand, Hong Kong, Indonesia, the U.K. and Germany resumes today after the two-day Christmas holday and before a break for New Year ́s Day on Januar 1.The S&P rose 0.3 percent to an all-time high of 2088.77 December 26. The measure capped a weekly advance of 0.9 percent after the Fed soothed concern over higher borrowing costs, saying after its last meeting of 2014 that policy makers will be patient when it comes to raising rates, even as evidence of a strengthening U.S. economy mounts. The Dow Jones Industrial Average cemented its place above the 18000 point mark last week, climbing 1.4 percent to 18053.71. The yen lost 0.7 percent last week and the euro retreated 0.4 percent, as the Bloomberg Dollar Spot Index, which tracks the dollar versus 10 major peers, jumped 0.5 percent. The U.S. currency is poised to strengthen against all of its 31 major counterparts in 2014, the first time that ́s occurred in data going back to 1989, as the improving economy and Fed plans to raise rates next year lure investors. The Australian dollar was little changed at 81.15 U.S. cents after slipping 0.1 percent last week in a sixth straight week of declines. New Zealand ́s dollar was steady at 0.7749 after trading little changed last week. It was climbed 3.6 percent against the AUD this year, set for a third straight year of gains. Gold was little changed at $1194.45 an ounce after advancing Dec. 26 amid speculation China, the world ́s biggest consumer, wil step up measures to support its economy, thereby boosting demand for the precious metal as a store of value.

Daily Technical Analysis

GBP/USD (4 Hours)

As the chart shows, the GBP decreased steadily versus the USD since the mid of October. The support line at 1.5492 was strong enough as the price was unable to break through clearly and rebounded. Although it slipped once below this support line it immediately returned in the sideward channel between 1.5804 and 1.5492. On a short term the CCI is indicating a possible upward movement, but further losses may occur.

Support & Resistance (4 Hours)