Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Dollar strength pushes down EUR/USD and GBP/USD, with Bank of England meeting in focus

The Bank of England is expected to raise rates today, but both EUR/USD and GBP/USD are moving lower in morning trading, while USD/JPY continues to move sideways.

Video poster image

EUR/USD

The dollar has strengthened once again with EUR/USD, and this has put further downward pressure on the pair.

A move back to the October lows at $1.1524 now seems likely, with a firm bearish view still in place. Additional declines would target $1.1392, a key level back in 2020. A more bullish view requires a move back above late October’s high at $1.168.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD

Dollar strength is pushing GBP/USD lower, but there is the potential for a recovery should the Bank of England (BoE) prove to be more hawkish than expected.

Today could see heightened volatility around the interest rate decision and press conference, but with the rate increase so widely expected it could equally pass without much incident. The reversal from yesterday’s highs near $1.37 suggest a more bearish view prevails, with $1.355 and then $1.345 coming into view. Buyers will want to see a move back above $1.37 that then brings the late October highs around $1.384 into view.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY

Little change has been seen here, with USD/JPY continuing to move sideways as it has done for three weeks.

¥113.50 and ¥114.50 mark the lower and upper bounds of the trading range respectively.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.