EUR/USD mixed, GBP/USD recovers while USD/JPY trades near seven-month high
Outlook on EUR/USD, GBP/USD and USD/JPY as German Ifo business climate disappoints and central banks except the BoJ remain hawkish.
EUR/USD tries to hold after two-day loss
At the end of last week EUR/USD fell back from its six-week high at $1.1012 amid weak Eurozone flash purchasing managers indices (PMIs) with it dropping to $1.0845.
This week the cross began on a more positive footing above the 55-day simple moving average (SMA) at $1.0886 which is back in sight due to a weaker-than-expected German Ifo business climate reading for May. While it holds, though, the breached June uptrend line at $1.0943 remains a possible upside target, together with the $1.097 mid-June high.
Support below last week’s trough at $1.0845 is seen around the 22 May high at $1.0832 below which lies the $1.08 region.
GBP/USD bounces off support
Last week GBP/USD slid to $1.2687 despite the Bank of England (BoE) raising its rates by 50 basis points (bps) for a 13th time to 5.00% as investors worried about the impact these hikes might have on the UK economy.
While $1.2687 underpins, the medium-term uptrend may continue, though, with the 16 June low at $1.2768 representing the first upside target. Further up sits key resistance at last week’s $1.2841 to $1.2848 highs.
If last week’s low at $1.2687 were to be slipped through, the $1.2679 May peak may offer support. If not, a drop back towards the $1.2599 to $1.2544 early-to-mid-June highs could ensue.
USD/JPY trades in seven-month highs
The USD/JPY advance is ongoing amid a hawkish Federal Reserve (Fed) and a ultra-dovish Bank of Japan (BoJ) with the ¥145.00 region remaining in sight.
Minor support below Friday’s ¥142.69 low can be spotted at the late November 2022 peak at ¥142.25.
Below it lies last week’s low at ¥141.22 and the ¥140.93 May peak.
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.