EUR/USD and GBP/USD move up, while USD/JPY weakens
A weaker dollar has given the euro and sterling space to rally, while USD/JPY has dropped back.
EUR/USD recovery continues
The counter-trend move in EUR/USD continues, as the dollar weakens to an extent and provides the euro with the space to move higher. Expectations of a 100-basis point (bp) rate hike in the US next week have been reined in as well, causing the dollar to ease back.
The bounce is still firmly a retracement within the broader downtrend. Initially, we could see the price move towards the 50-day simple moving average (SMA) at $1.0474. Ultimately, however, the longer-term bearish view remains in place.
GBP/USD bounces
A small bounce here has seen GBP/USD recoup some lost ground, although as with EUR/USD the price remains firmly in a downtrend.
For the moment, further gains may target $1.208, and then on to the 50-day SMA, currently $1.227. However, this move higher is likely to be short-lived, unless we see a rally above $1.24.
USD/JPY edges lower, but uptrend intact
USD/JPY continues to make headway overall, and remains solidly above the 50-day SMA, which is also rising. The dollar remains firmly strong, with no sign that the price is about to reverse.
Overall further upside seems likely, with dips continuing to be bought, and a deeper pullback as yet appears unlikely. Should one materialise, however, the price will target ¥135.00, and then down to the 50-day SMA at ¥133.00.
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
