EUR/USD, GBP/USD rally on weaker greenback while USD/CAD slips
Outlook on EUR/USD, GBP/USD and USD/CAD as US dollar takes a hit due to softer US CPI data and recession warnings.
EUR/USD trades in two-month highs on weaker greenback
EUR/USD’s advance from Monday’s $1.0832 low gained upside momentum on a weaker-than-expected US consumer price index (CPI) reading and as the Federal Reserve (Fed) projected a 'mild recession', both pushing the USD dollar down.
The weaker greenback benefitted the EUR/USD cross which rallied to a two-month high and reached the minor psychological $1.10 mark above which beckons the $1.1033 February peak.
Support is now seen at the $1.0973 early-April high and then around the $1.0929 late-March high.
GBP/USD heads back up towards its recent $1.2525 high
GBP/USD recovery rally from Monday’s $1.2345 low gained traction as the US dollar sold off after weaker-than-expected CPI data and the US Fed warning of a mild recession later in the year due to the recent banking turmoil.
The cross now grapples with the minor psychological $1.25 mark, above which lies the early-April high at $1.2525, a rise above which would target the May 2022 peak at $1.2667.
Minor support can be spotted between the December and January highs at $1.2448 to $1.2446, above the March-to-April support line at $1.242. Further down sits minor support at Tuesday’s $1.2386 low ahead of Monday’s $1.2345 trough.
USD/CAD resumes its descent as central bank keeps rates at 4.5%
USD/CAD revisited its early-April low at C$1.3407 as the Bank of Canada (BoC) left its interest rates unchanged for a second straight month at 4.5% in view of falling inflation and because of the stress in the global banking system.
Once the recent low at C$1.3407 has been slipped through, the early-December low at C$1.3386 will be in focus, and medium-term the February trough at C$1.3263 as well.
The medium-term bearish view will remain valid as long as no bullish reversal takes the cross above Monday’s high at C$1.3553.
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.
