Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Dollar weakens as FOMC begins its two-day meeting

EUR/USD and GBP/USD are recovering this morning while USD/JPY drops back, as nervousness builds in markets as they look towards tomorrow’s Fed decision.

Video poster image

​​EUR/USD attempts to hold the 50-day SMA

EUR/USD retreated yesterday, returning to the 50-day simply moving average (SMA) (currently $0.9888) after breaking above it last week.

The price is now rebounding from oversold intraday conditions, moving higher off the 50-day moving average (MA) in a bid to recover lost ground. A drop back below the 50-day MA would bolster the bearish view, and bring trendline support from the September low into play. Further losses below this would likely signal an additional push back to the lows of September.

Continued gains above $0.998 would likely suggest that another attempt to push higher is underway.

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

GBP/USD recovers above $1.15

Dollar strength bore down on GBP/USD yesterday, but it has edged up in early trading.

This pair still finds itself awaiting the Federal Reserve (Fed) decision tomorrow, but hopes of a softer Fed outlook have seen a small recovery. Further declines towards the 50-day SMA (currently $1.137) would also bring rising trendline support from the September low into view.

A move back above last week’s highs would continue to bolster the neutral view and suggest that the pair may push towards the 100-day SMA.

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

USD/JPY drops back

The USD/JPY apparent recovery has stalled, as nervousness around the next Fed decision prompts some dollar weakness.

Further declines target the 50-day SMA (currently ¥144.32), deepening the retracement but leaving the uptrend firmly intact.

Bulls will want to see today’s weakness reversed and a fresh move towards ¥150.00 develop.

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

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

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.