The dollar rose 0.6 percent to 120.69 yen

Good morning from beautiful Hamburg and welcome to our latest Daily FX Report. When Russia’s currency depreciation bottomed on Jan. 30, one investor announced it was loading up on rubles to the tune of $7.9 billion. Now, after the world’s biggest rally, that same investor is selling. The investor? Russia. Deputy Finance Minister Alexey Moiseev said on Tuesday the ruble is “very strong” and the ministry has started buying foreign currencies. The ruble’s 42 percent surge from a record low at the end of January has hit resistance at about 49 rubles against the greenback as verbal interventions by policy makers in April gave way to the central bank buying dollars. Given the timing of the Finance Ministry’s purchases exactly as the ruble bottomed in January, some analysts say they’re taking more notice of the ministry’s strategy.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspectiv

The euro tumbled the most in two months after a European Central Bank official said policy makers plan to boost bond purchases before an anticipated mid-year lull. The single currency slumped after Executive Board member Benoit Coeure said the ECB will increase purchases under its quantitative-easing program from 60 billion euros ($67 billion) in May and June, ahead of a drop-off in market liquidity. The euro extended losses versus the dollar after a report showed residential construction in the U.S. surged in April to the highest in more than seven years, supporting the Federal Reserve’s move toward raising interest rates. The euro dropped 1.5 percent to $1.1150 as of 5 p.m. in New York, the most since March 19. It slipped 0.9 percent to 134.57 yen. The dollar rose 0.6 percent to 120.69 yen. Improving economic data from the euro area has fueled speculation policy makers may curtail asset purchases before a September 2016 end date, lifting the euro from a 12-year low. ECB President Mario Draghi attempted to quell such talk last week, saying the program would be implemented “in full.” The euro fell versus 15 of 16 major peers as Coeure’s comments about injecting money. Accelerated stimulus in Europe contrasts with monetary policy in the U.S., where the Fed is inching closer to raising interest rates for the first time since 2006. Residential construction in the U.S. surged in April, a report showed Tuesday, boosting the case for higher borrowing costs. Housing starts jumped to a 1.14 million annualized rate, the most since November 2007, according to data from the Commerce Department. The Fed releases minutes from its April 29 meeting on Wednesday.

Daily Technical Analysis

GBP/CHF (Daily)

After the sharp sell-off in January based on the Swiss National Bank the GBPCHF was able to recover most of it’s losses. The currency pair is building a triangle and touched both trendlines. It’s might be possible that the price will continue the recovery if the next resistances will be broken significant. The Indicators are showing a undecided range at the time.

Support & Resistance (Daily)