EUR/USD sheds some ground and GBP/USD heads sharply lower, while USD/JPY recovers from its lows
The dollar has staged a recovery from Monday’s session, lifting USD/JPY but pushing EUR/USD and GBP/USD lower.
EUR/USD bounce eases off
After surging to $1.10 yesterday, EUR/USD price has eased off, though the bounce remains intact.
If the price can hold above $1.09, then a new test of the $1.10 highs may develop. However, as calls for an emergency Federal Reserve (Fed) interest rate cut diminish we may see a strengthening of the US dollar, leading to more of last Friday’s gains being unwound.
GBP/USD lower again
Yesterday’s bullish reversal has faded, and EUR/USD price finds itself heading back towards $1.27.
Last week saw the price hold above $1.27, so a close below this opens the way to the lows of June at $1.2614. Buyers will want to see the price hold above $1.27 and then reverse course once more to help bolster the view that a higher low has been created.
USD/JPY rallies off its lows
While the USD/JPY pair rebounded off its lows, in a similar fashion to what we saw in equity markets, it has only seen small gains so far this morning.
A low may yet have formed, and bulls would need to see a move back above ¥146.00 to help reinforce this view. However, we may have seen a long-term trend change here, which might mean even a bounce to ¥150.00 would only create a lower high.
Renewed declines bring the lows of Monday at ¥141.78 back into play.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
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
- Take your position
- 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.
