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.
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.
