EUR/USD, GBP/USD stall while USD/JPY appreciates further
Outlook on EUR/USD, GBP/USD and USD/JPY as Japan inflation drops to 17-month low.
Subdued EUR/USD continues to range trade
EUR/USD's slide from last week’ s high around the $1.10 mark due to pared back rate cut expectations found support along the 200-day simple moving average (SMA) at $1.0847 which held the cross throughout this week.
Further sideways trading between the 55- and 200-day SMA and Wednesday’s low and Thursday’s high at $1.0845 to $1.0906 remains at hand.
While the December to-January downtrend line at $1.0917 isn’t bettered, medium-term downside pressure should prevail.
GBP/USD recovery nipped in the bud by weak UK retail sales
GBP/USD's rise off this week’s low at $1.2597 on differing rate cut expectations between the US and the UK has taken the cross to Friday’s $1.2714 intraday high before it gave back some of its recent gains on UK retail sales falling the most in nearly three years.
Significant support for the currency pair remains to be seen between the late December to January lows at $1.2612 to $1.2597.
Resistance above $1.2714 is to be found at the 22 December high at $1.2744. Further up lie the 2 and 11 January highs at $1.2760 to $1.2786.
USD/JPY continues its ascent
USD/JPY has risen to a new six-week high at ¥148.80 as Japanese inflation eased to a 17-month low.
Next up are the late November highs around ¥149.75 and the psychological ¥150.00 mark. If overcome, the November peak at ¥151.91 would be back in the frame.
Minor support below Thursday’s ¥147.66 low sits between Tuesday’s high and Wednesday’s low at ¥147.31 to ¥147.10. Further down the area between the 5 and 11 January highs and the 55-day SMA at ¥146.41 to ¥145.99 provides more solid support.
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.
