EUR/USD, GBP/USD rally while USD/JPY falters after BoE, Fed rate cuts
EUR/USD, GBP/USD rally while USD/JPY falters at resistance following BoE, Fed widely anticipated 25 basis point rate cuts.
EUR/USD recovery underway
Following the US Fed's (Federal Reserve bank) widely anticipated 25 basis point rate cut, the US dollar weakened. This benefitted EUR/USD which so far bounced back to $1.0824. A rise above this level is expected to take place over the coming days with the 200-day simple moving average (SMA) at $1.0868 being eyed.
Previous resistance at $1.0778-to-$1.0761 should now act as a support zone due to inverse polarity.
GBP/USD rallies
Following Thursday's widely anticipated Bank of England (BoE) 25 basis point rate cut, GBP/USD rallied as the US dollar weakened amid the Fed's 25 basis point rate cut. The key $1.3000-to-$1.3048 resistance zone is thus back in play. It would need to be exceeded, for a bullish reversal to be confirmed.
Support is now seen around the 24 October low at $1.2988.
USD/JPY comes off resistance
USD/JPY has been rejected by the ¥154.56-to-¥155.37 resistance area which consists of the early June high and the 18 July low. Minor support is seen along the 200-day SMA at ¥151.64.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
