EUR/USD rises and GBP/USD holds steady, but USD/JPY falls back
While the euro is recovering against the dollar and the pound is holding steady, the greenback has dropped back against the yen after recent strong gains.
Tentative buying lifts EUR/USD
EUR/USD is rebounding in early trading, after an almost one-way move since the election.
After such steep losses in such a short space of time, a rebound is to be expected. A short-term bounce may target the late October lows just below $1.08. Any bounce that fails to clear the early November peak at $1.0935 may well become a fresh selling opportunity.
GBP/USD steadies after losses
The early August low around $1.267 is back in play, after steep losses for GBP/USD.
Just below this lies the June low at $1.26. If this is broken then the next levels to watch become the May and April lows. A short-term recovery back above $1.27 might suggest a low is in place for now, though any turn lower below $1.304 might still signal that a lower high has been created.
USD/JPY eases off after huge rally
The surge has continued here, though some losses have been seen in early trading.
The remarkable recovery in USD/JPY has raised fears of fresh intervention by Japan. Having recouped the ¥155.00 level, the pair looks well-placed for further gains. A close back below ¥152.00 might negate this bullish view.
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