Dollar strength weighs on EUR/USD and GBP/USD, and pushes USD/JPY higher
The euro and sterling have fallen back against the dollar, despite UK inflation that indicated a resumption of price growth. Meanwhile USD/JPY is climbing once again.
EUR/USD falters at $1.06
EUR/USD has recovered from its one-year low over the past week and is now testing $1.06 from below.
This was the low from April, so if the price can close above this then a further recover may develop, targeting the $1.0670 low from June. However, the steep losses of the past two months point towards a change of trend, and the price would need to close back above $1.08 to suggest that a longer-term recovery was possible.
GBP/USD stalls despite higher CPI
GBP/USD recovery over the past two sessions has helped to halt the selling, and for now the $1.26 level holds as support.
$1.2860 becomes the next level to watch, having been brief support on the way down. Longer-term, the price will head back towards $1.30 if it can sustain this upside. A close back below $1.26 puts the sellers in charge once more.
USD/JPY pushes back towards recent highs
USD/JPY rally from the September lows continues, with no sign of a slowdown as yet.
Last week saw the price falter and drop back below ¥154.00, but buyers stepped in and revived the bounce. For the moment the buyers are in charge, though the risk of Japanese FX intervention rises if the rally continues. In the short-term, a close back below ¥154.00 might signal that a pullback has begun.
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.
