The U.S. currency was little changed on the week at $1.0984 per euro

Good morning from beautiful Hamburg and welcome to our first FX Report of this week. An official gauge of Chinese manufacturing at the weekend slid to a five-month low, with the final reading on a private gauge due Monday expected to show ongoing contraction in the sector. Chinese stocks sank the most since 2009 in July as regulators struggled to stave off an equity rout amid weakening growth in the world’s second-largest economy. Factory indexes for Japan to India and the U.S. will also be released and Greek markets are set to resume following a five-week suspension. Futures on Japan’s Nikkei 225 Stock Average lost 0.2 percent to 20,565 in Chicago, while contracts on the index were bid for 20,560 in the Osaka pre-market, from 20,570 at their close on Friday.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

For the first time in more than a month, dollar bulls are on their back foot. The greenback snapped a five-week rally, its longest this year, after a report showed U.S. worker pay rose at the slowest pace on record, damping speculation that the Fed will boost interest rates next month from near zero. A gauge of the greenback touched a two-week low Friday, capping a week of losses for the dollar against most of its major peers. Traders are looking ahead to manufacturing and employment data next week for indications of whether the economy is strong enough to justify the Fed’s first hike since 2006. The Bloomberg Dollar Spot Index dropped 0.1 percent this week to 1,208.4. The U.S. currency was little changed on the week at $1.0984 per euro in New York and 123.89 yen. The greenback wiped out its weekly gain Friday after labor data dashed projections that an improving job market would boost pay. The 0.2 percent rise in wages and salaries was the smallest since records began in 1982 and followed a 0.7 percent increase in the first quarter, Labor Department statistics showed. The Federal Open Market Committee will tighten policy when it sees “some further improvement in the labor market,” and is “reasonably confident” inflation will move back to its 2 percent goal over the medium term, it said in a statement July 29. The central bank’s next scheduled announcement on interest rates is Sept. 17. So far, the euro is following the greenback’s playbook. A jump in dollar borrowing around this time also contributed to the losses by putting more money into circulation. Sovereign and corporate entities outside the U.S. now owe a record, according to the Bank for Int. Settlements.

Daily Technical Analysis

USD/TRY (Daily)

The United States Dollar strengthened over months versus this exotic currency. The price is again very close to the next resistance around 2.8 TRY. The Awesome Oscillator shows the upward movement which is also supported by both Exponential Moving Averages. It might be possible that a further movement closer to the last high follows.

Support & Resistance (Daily)