EUR/USD stabilises, but GBP/USD and USD/JPY remain under heavy pressure
The UK rate cut yesterday caused sterling to drop sharply against the dollar, while the yen continues to surge against the greenback. EUR/USD is holding steady for now.
EUR/USD hits three-week low
EUR/USD fell yesterday to its lowest level in three weeks, but is edging higher this morning.
If a higher low is to form in coming days then the price needs to close back above the 200-day simple moving average (SMA). Alternately, further losses would head towards the June lows at $1.067.
GBP/USD down sharply after UK rate cut
The interest rate cut from the Bank of England (BoE) sent the British pound slumping against the US dollar, wiping out almost all the gains made since the beginning of July. The 100-day SMA is now in sight, and then the 200-day, followed up by the late June low around $1.26.
While the uptrend is still in place from early May, and a higher low could yet form, there is not yet any price action which suggests the buyers are reasserting control.
USD/JPY slump goes on
The rout continues, as USD/JPY drops to its lowest level since mid-May.
Further losses target the lows seen in May at ¥1468.48, with the sellers remaining firmly in charge. In the short-term a close above ¥150.00 might suggest a low has been formed. However, there is no sign of any price action to support that at present.
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