Dollar recovers after Fed minutes, bolstering USD/JPY and USD/CAD, while GBP/USD rises ahead of Autumn Statement
The dollar is recovering after last night’s Fed minutes showed, that there was no desire to cut US rates. The pound continues to hold up well ahead of the Autumn Statement from Chancellor Jeremy Hunt.
GBP/USD stuck below $1.60
Three days of gains with GBP/USD have helped to put the price back above the 200- and 100-day simple moving averages (SMA).
The next destination in any further push to the upside is the $1.26 level, an area of support in June and August. The uptrend from the lows of October remains in place, and even a pullback towards $1.235 and trendline support might not entirely dispel the short-term bullish view.
For a more bearish view to regain pre-eminence, the price would need to fall back below $1.23.
USD/JPY surges from two-month low
USD/JPY briefly touched a two-month low on Tuesday, before rebounding.
This has, for now, seen the price fall back to a possible higher low, though we would need to see some follow-through back above ¥149.00 to confirm that this view is in place. This might then see the price rebound towards the highs of October and November towards ¥152.00.
A reversal back below ¥147.00 would renew the short-term bearish view, though a lower high is needed to alter the medium-term view towards a more bearish one.
USD/CAD holds above C$1.37
For now USD/CAD continues to be supported by trendline support from the early-November low, though a lower high earlier in the month has put some pressure on the price.
A close below C$1.364 would put additional downside pressure on the price, and could solidify the bearish view. This might then see the price head back to the mid-October low at C$1.357.
A rally back above C$1.38 would suggest that the buyers have reasserted control.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
