Global investors have reacted to the news, potentially placing North American participants in a challenging situation. They will encounter significant fluctuations and may hesitate to considerably extend these movements without observing additional developments. The anticipation of a last-minute agreement contributed to an increase in the euro, which reached $1.1605 in North America yesterday, marking a three-day peak. Upon the announcement of the two-week ceasefire, the euro experienced a modest increase, surpassing $1.1690 in light trading conditions, subsequently reaching a new peak in late Asia Pacific activity near $1.1710. It surpassed the 200-day moving average (~$1.1675) for the first time since March 2. It also met the 38.2% retracement of the losses since the high was reached in late January, approximately $1.2080 near $1.1665. The forthcoming retracement is positioned around $1.1745.

The dollar experienced a modest increase against the Japanese yen yesterday, trading briefly and just above JPY160 for the first time in six sessions. Options for 1.1 billion expire there today. Upon the announcement of the ceasefire, the dollar was traded at JPY158.55, subsequently reaching a secondary low beneath last week’s low of approximately JPY58.30, edging closer to JPY158, where options worth $600 million are set to expire today. A decisive break could lead to JPY157.35. Sterling advanced to a three-day peak, surpassing the $1.3300 mark. The announcement of the ceasefire resulted in a surge to nearly $1.3410. The gains were extended to $1.3445, surpassing the 200-day moving average of approximately $1.3415. The 1.3430 area represents the (38.2%) retracement target of the slide since the multiyear high was recovered in late January (~1.3870). The forthcoming retracement is positioned around $1.3515.

The US dollar experienced a decline, reaching three-day lows against the Canadian dollar late in North America yesterday. It reached CAD1.3885. Subsequently, it was traded at approximately CAD1.3835 in the immediate aftermath of the ceasefire announcement. The currency reached a low of CAD1.3825 before rebounding to CAD1.3870 during European trading hours. The CAD1.3800 level holds greater significance. The 20- and 200-day moving average is situated alongside the 38.2% retracement of the rally that commenced from the March 9 low, approximately CAD1.3525.

The Australian dollar appreciated to nearly $0.6975 yesterday, marking its peak since March 24. The ceasefire announcement resulted in a significant increase. It reached $0.7085 and exceeded the (61.8%) retracement of the declines since the peak on March 11 (~$0.7185). The 0.7100-25 area may represent the next technical hurdle. It retraced to approximately $0.7035 during the European morning session but appears set for a rebound in North America.