EUR/USD, GBP/USD under pressure while USD/JPY rises ahead of US NFP
Outlook on EUR/USD, GBP/USD and USD/JPY ahead of Eurozone inflation and US Non-Farm payrolls.
EUR/USD resumes its descent ahead of Eurozone inflation data
EUR/USD's bearish reversal off its December $1.1139 high, made near its 27 July high at $1.1149, has so far taken it to Wednesday’s $1.0894 low as excessive rate cut expectations were pared back and yields rallied. This low is back in sight as the cross resumes its descent after a pause on Thursday as German retail sales fall far more than estimated by 2.5% instead of a forecast 0.1% decline.
Eurozone consumer price index (CPI) will be watched closely and a fall through $1.0894 could lead to the 200- and 55-day simple moving averages (SMA) at $1.0848 to $1.0841 being reached.
Resistance above the December-to-January downtrend line at $1.0956 can be found at Thursday’s $1.0972 high ahead of more significant resistance which sits between the $1.1009 to $1.1017 November and mid-December highs.
GBP/USD hovers above this week’s low
GBP/USD's bearish reversal from its five-month high at $1.2828, made in late December, took it to this week’s low at $1.2611 before it recovered.
A rise in UK house prices for the first time in eight months has helped the cross to hold for now, ahead of this afternoon’s closely watched US Non-farm payrolls (NFP).
The November-to-January uptrend line at $1.264 may offer support ahead of $1.2611. If fallen through, though, the 200-day SMA at $1.2533 and the December low at $1.2501 would be eyed.
Minor resistance lies at Thursday’s $1.2730 high.
USD/JPY on track for fifth day of gains
The swift rally in the USD/JPY pair amid reassessed US rate cut expectations has led to four straight days of gains with a rise above the 19 December high at ¥144.95 currently being seen despite Japan consumer morale hitting its highest level in two years.
The next potential upside targets are the 11 September low at ¥145.91, followed by the 11 December high and 55-day SMA at ¥146.59 to ¥146.90.
Good support is seen along the 200-day SMA at ¥143.26.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
