EUR/USD, GBP/USD stall while USD/JPY appreciates further
Outlook on EUR/USD, GBP/USD and USD/JPY as Japan inflation drops to 17-month low.
Subdued EUR/USD continues to range trade
EUR/USD's slide from last week’ s high around the $1.10 mark due to pared back rate cut expectations found support along the 200-day simple moving average (SMA) at $1.0847 which held the cross throughout this week.
Further sideways trading between the 55- and 200-day SMA and Wednesday’s low and Thursday’s high at $1.0845 to $1.0906 remains at hand.
While the December to-January downtrend line at $1.0917 isn’t bettered, medium-term downside pressure should prevail.
GBP/USD recovery nipped in the bud by weak UK retail sales
GBP/USD's rise off this week’s low at $1.2597 on differing rate cut expectations between the US and the UK has taken the cross to Friday’s $1.2714 intraday high before it gave back some of its recent gains on UK retail sales falling the most in nearly three years.
Significant support for the currency pair remains to be seen between the late December to January lows at $1.2612 to $1.2597.
Resistance above $1.2714 is to be found at the 22 December high at $1.2744. Further up lie the 2 and 11 January highs at $1.2760 to $1.2786.
USD/JPY continues its ascent
USD/JPY has risen to a new six-week high at ¥148.80 as Japanese inflation eased to a 17-month low.
Next up are the late November highs around ¥149.75 and the psychological ¥150.00 mark. If overcome, the November peak at ¥151.91 would be back in the frame.
Minor support below Thursday’s ¥147.66 low sits between Tuesday’s high and Wednesday’s low at ¥147.31 to ¥147.10. Further down the area between the 5 and 11 January highs and the 55-day SMA at ¥146.41 to ¥145.99 provides more solid support.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
