EUR/USD calm ahead of ECB, as GBP/USD rebounds slightly and USD/JPY ticks down
The ECB meeting could well provoke some EUR/USD volatility, while GBP/USD continues to watch Brexit developments with some concern.
EUR/USD steady ahead of ECB
As might be expected, the EUR/USD pair has not moved much higher this week, with bulls clearly unwilling to drive it higher in advance of a European Central Bank (ECB) meeting that may see at least some comment on the strength of the euro.
Losses since early August have been stifled just above $1.17, so a break below here would be regarded as a bearish development. Should the meeting not strike a particularly dovish tone then we can expect the pair to make tentative moves in the direction of $1.20, the high from the beginning of the month.
GBP/USD edges up after sharp losses
Despite a small bounce from yesterday’s lows, the GBP/USD pair continues in the downward move from the September peak, as Brexit tensions rise. A resumption of the downward move that takes out $1.29 would clear the way for a move towards $1.277 and $1.25 over the near term.
A recovery above $1.304, previous support, is probably contingent on some improvement in the current UK/EU impasse, but would signal that the uptrend of recent months has resumed.
USD/JPY trades in a narrowing pattern
The USD/JPY pair continues to see a smaller range, as it faces the choice between breaking above trendline resistance with a move above ¥106.50, or below trendline support if it takes out ¥105.60.
The impressive recovery from the August lows has come under threat as bullish momentum has drained away, with the longer-term downtrend reasserting itself.
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
