EUR/USD and GBP/USD hold their ground while USD/JPY edges lower
The euro and sterling are holding their gains against the dollar, while the greenback drops back against the yen.
EUR/USD holding steady
The EUR/USD currently shows little hesitation ahead of the European Central Bank (ECB) meeting on Thursday, holding around the $1.09 level.
After the huge gains from the end of June, some consolidation might be expected, especially as investors await the ECB decision tomorrow. A close above $1.092 clears recent resistance.
In the short-term, a drop back below $1.085 might signal that the price will retest the 200-day simple moving average (SMA).
GBP/USD sits at one-year high
Dollar weakness has driven the GBP/USD sharply higher, and while month-on-month (MoM) UK consumer price index (CPI) slowed in June, the annual figure held at 2%.
As with EUR/USD, the price has seen sharp gains over the past three weeks, and may consolidate, but the overall bullish view is still in place.
Further gains target the July 2023 high at $1.3146.
USD/JPY tests 50-day moving average
The USD/JPY previous four sessions saw the price test the 50-day SMA, but the pair is breaking lower in trading this morning.
Nonetheless, the uptrend is still intact, with Japan’s FX intervention last week having merely driven the price back from its latest higher high.
A close back above ¥158.00 might signal that a low has been formed.
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