The dollar hovered at eight-year highs against the yen

Good morning from Hamburg and welcome to our latest Daily FX Report. U.S. stocks ended sharply higher on Wednesday and the Nasdaq logged a record high close, led by a rebound in technology and healthcare stocks and optimism that Greece would avoid defaulting on its debt. Reports that Athens and its creditors were near a deal pushed the euro higher against the dollar, partly reversing recent moves. EU officials, however, dismissed Greek claims an aid agreement was being drafted. Investors said U.S. stocks were oversold in the previous session, when concerns about Greece and foreign exchange pushed Wall Street to its steepest fall in three weeks. The S&P has inched up to a handful of record high closes in May. But the stock market has failed to make what some traders see as meaningful gains, in part because they are concerned about when the FED will start to raise interest rates for the first time since 2006.

However, we wish you a successful trading day!

Market Review – Fundamental Perspective

The dollar hovered at eight-year highs against the yen early on Thursday, having stopped short of breaking above its 2007 peak as it consolidated recent gains against the euro and other peers. The USD popped above 124.00 yen for the first time since June 2007, but lost steam after reaching 124.09, just shy of the 124.14 peak. It last traded at 123.76. A break above the key level would take the dollar back to highs not seen since December 2002, a move that could prompt more verbal intervention from Japanese officials. The dollar, however, shed some ground against the euro amid tentative hopes that cash-strapped Greece may be nearing a deal to secure fresh funding. The euro bounced off a one-month low of $1.0819 to reach $1.0905, snapping a recent string of falls. The Greek government said on Wednesday it is starting to draft an agreement with its euro zone partners and the International Monetary Fund that would pave the way for aid. However, European officials have dismissed this as wishful thinking and German Finance Minister Wolfgang Schaeuble said he was surprised by the upbeat tone from some Greek government officials. Still, the steadier euro saw the dollar index dip to 97.261, from a one-month peak of 97.775. Among commodity currencies, the New Zealand dollar fared the best after the country's dairy co-operative Fonterra said it expected global demand for dairy products to eventually recover. The NZD dollar climbed to $0.7254, pulling away from a two-month low of $0.7212.

The dollar hovered at eight-year highs against the yen early on Thursday, having stopped short of breaking above its 2007 peak as it consolidated recent gains against the euro and other peers. The USD popped above 124.00 yen for the first time since June 2007, but lost steam after reaching 124.09, just shy of the 124.14 peak. It last traded at 123.76. A break above the key level would take the dollar back to highs not seen since December 2002, a move that could prompt more verbal intervention from Japanese officials. The dollar, however, shed some ground against the euro amid tentative hopes that cash-strapped Greece may be nearing a deal to secure fresh funding. The euro bounced off a one-month low of $1.0819 to reach $1.0905, snapping a recent string of falls. The Greek government said on Wednesday it is starting to draft an agreement with its euro zone partners and the International Monetary Fund that would pave the way for aid. However, European officials have dismissed this as wishful thinking and German Finance Minister Wolfgang Schaeuble said he was surprised by the upbeat tone from some Greek government officials. Still, the steadier euro saw the dollar index dip to 97.261, from a one-month peak of 97.775. Among commodity currencies, the New Zealand dollar fared the best after the country's dairy co-operative Fonterra said it expected global demand for dairy products to eventually recover. The NZD dollar climbed to $0.7254, pulling away from a two-month low of $0.7212.

Daily Technical Analysis

CBOT.YM (Daily)

Since Dec. 2013 the Dow experienced a upward movement until the US index reached a level at 18270 where it rebounded. During the last trading sessions we saw mainly a sideward movement between the first support and the first resistance line. Although the Dow is still at a very high level at the moment, it appears that the index lost its momentum and may decline should the fundamentals in the U.S. remain without any positive stimulus such as the expeted increase in key interest rates.

Support & Resistance (Daily)