Dollar surged 1.5 percent to $1.1195 per euro

Good morning from beautiful Hamburg and welcome to our last Daily FX Report for this week.The masked "Jihadi John" killer who fronted Islamic State beheading videos has been identified as Mohammed Emwazi, a British computer programming graduate from a well-to-do London family who was known to the security services. The black-clad militant brandishing a knife and speaking with an English accent was shown in videos released by Islamic State (IS) apparently decapitating hostages including Americans, Britons and Syrians. The 26-year-old militant used the videos to threaten the West, admonish its Arab allies and taunt President Barack Obama and British Prime Minister David Cameron before petrified hostages cowering in orange jump suits.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

Japan ́s industrial output increased the most in more than three years while retail sales slid inflation slowed, underscoring strength in export industries and weak domestic demand. Production jumped 4 percent in January from the previous month, exceeding forecasts with the biggest gain since June 2011, according to trade ministry data. Retail sales fell 1.3 percent, household spending dropped and the central bank ́s main inflation measure slowed to 0.2 percent, excluding sale-tax effects. A pick up in exports driven by the weaker yen and stronger demand in the U.S. helped fuel manufacturing. The drop in the exchange rate is also increasing costs for households that have seen living expences outpace incomes, highliting the stakes for Prime Minister Shinzo Abe as he tries to get companies to boost pay in this spring ́s negotiations with labor unions. The yen has declined 8.5 percent against the dollar since Kuroda boosted already-unprecedented easing on Oct. 31.
The Standard & Poor ́s 500 Index lost 0.2 percent as energy stocks sank the most in amonth. U.S. crude fell for the sixth time in seven days, trading at its biggest discount to Brent oil in 13 month amid record American supplies. Gains in Apple Inc. and Microsoft Corp. sent the Nasdaq Composite up 0.4 percent to its highest level since March 2000. Core inflation in the U.S., which excludes food and fuel, rose more than economists projected last month, even as overall consumer prices tumbled. The Dow Jones Industrial Average dropped 0.1 percent from a record, reducing its February advance to 6.1 percent. The dollar surged 1.5 percent to $1.1195 per euro, approaching its strongest level since 2003.

Daily Technical Analysis

EUR/CAD (Daily)

The European currency was strong over 2 years but at the level around 1.550 the bears took the control. As against the most important currencies the euro began its fall and almost the whole 2014 it depreciated against the CAD. Just the suppor level at 1.3828 could stop the fall. Currently it is moving sideward. The Momentum is showing that possible losses might occur.

Support & Resistance (Daily)