EUR/USD and GBP/USD consolidate after surge, while USD/JPY struggles to push higher
The euro and sterling have edged back from their recent highs against the dollar, while the greenback lost ground against the yen overnight.
EUR/USD off last week’s highs
Last week saw the EUR/USD price climb to a near four-month high, as hopes of a Federal Reserve (Fed) interest rate cut in September weakened the US dollar.
The price has dropped back below the May highs, but was arguably overextended at these levels, and some consolidation was not surprising. Bulls will want to see a close back above $1.09 to put another challenge of recent highs on the agenda.
In the short-term, further declines could see the price head towards the rising 50- and 200-day simple moving averages (SMA), currently almost level around $1.0814.
GBP/USD stabilises
Like the EUR/USD pair, the GBP/USD pair had enjoyed a strong rally from late June, but that has eased in recent days.
The March high at $1.2893 may provide some support, while below that comes the early June high at $1.286. A close below this would signal a deeper retracement towards the 50-day SMA, currently $1.2759. A close back above $1.295 might help suggest another short-term leg higher has begun.
USD/JPY retreats after late recovery last week
It has been just over a week since Japan intervened in FX markets, and the USD/JPY pair remains under pressure, though it has not yet breached last week’s lows around ¥155.30.
Last week witnessed a rebound off Thursday’s low, but this has fizzled out so far this morning. A close back above the 50-day SMA and above ¥158.00 hands the advantage to the buyers, while alternately sellers will be hoping for a drop back below last week’s low and also below the 100-day SMA.
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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
