EUR/USD edges up, while GBP/USD drops back and USD/JPY drifts sideways
The pound is in retreat ahead of BoE meeting, while against the yen the dollar is unable to make headway.
EUR/USD claws back some losses
After Friday’s losses, EUR/USD's small recovery has taken place, but it is far from clear that the buyers are regaining the upper hand.
The failure to push on above the 50-day simple moving average (SMA) last week would suggest the sellers are in control, but at present the view is more neutral. A recovery above $1.17 would put the price back on a more short-term upward footing, while a drop back below $1.1534 would suggest a fresh move to the downside is underway.
GBP/USD heads lower
The GBP/USD price has rolled over in definitive fashion, and in a way that suggests we could see October’s gains further eroded as the downtrend reasserts itself.
The fall back below $1.37 and the lower highs in late October point towards a bearish view, and the price action over the past three days has certainly favoured the sellers.
USD/JPY remains in consolidation mode
USD/JPY has gone from sharp rally to gentle consolidation, with gains stalling at ¥114.50.
We look for a continuation of this ranging move for the time being before a resumption of the longer-term move higher.
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