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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

​​EUR/USD, GBP/USD and USD/JPY all fall back after US credit downgrade​

​​Risk appetite has been dimmed across FX markets after the downgrade of the US credit rating by Fitch.

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​​​EUR/USD drops back below $1.10

​Losses have continued to be stemmed around the $1.095 level, as the EUR/USD stabilises after last week’s European Central Bank (ECB) decision.

​​As the price remains above the 50- and 100-day simple moving average (SMA), a bullish view continues to prevail overall, and a recovery back above $1.105 would mark a bullish development. This might then open the way back to the highs of early July.

​​A close below $1.09 might then suggest more losses were likely, targeting the lows of early June around $1.067.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD pullback continues

​Losses continue here, although the overall uptrend is still in place for GBP/USD.

​​A higher low has yet to form, though a recovery above $1.285 would help to bolster a bullish view. This might then see a fresh move towards the July highs.

​​Additional losses target the $1.26 level, last seen at the end of June.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY drifts back from Tuesday high

​Tuesday saw additional upside, although the USD/JPY witnessed some volatility after the Fitch downgrade of the US.

​​Further gains will target the ¥145.00 highs from late June, with a higher high above this helping to reinforce the bullish view.

​​Sellers will need to see a drop back below ¥142.00, and then on below ¥141.00, in order to suggest that a move back to ¥138.00.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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