GBP/USD holds firm while USD/JPY and USD/CAD edge up as markets await Fed decision
The pound is steady against the dollar, while the US currency has moved up against the yen and the Canadian dollar.
GBP/USD clings to $1.27
GBP/USD finds itself stuck in a tight range, as it awaits the Federal Reserve (Fed) and Bank of England (BoE) decisions this week.
For the past two weeks the pair has essentially oscillated around $1.27. It has been unable to break higher, with gains stalled around $1.275. Conversely, weakness towards $1.265 has been met with buying.
It seems likely that this week’s central bank decisions will provide a resolution to the current situation.
USD/JPY under pressure after some hawkish Bank of Japan comments
The rally from late December has stalled in USD/JPY over the past two weeks, though hints of more hawkish commentary in the latest Bank of Japan (BoJ) minutes did knock the pair.
Sustained gains above ¥148.00 have proven impossible, though in the short-term buyers continue to defend ¥147.00. A close below ¥146.50 could mark a firm break to the downside, forming a lower high.
Alternately, a close above ¥149.00 breaks the range to the upside, and then targets the ¥149.70 highs from the second half of November. Beyond this lies the November peak just below ¥152.00.
USD/CAD retracement slows ahead of Fed decision
A lower high does appear to have been created here with USD/CAD. The price surrendered its hold on C$1.35 and has also slipped back below the 200-day simple moving average (SMA).
The bearish view was reinforced on Tuesday with a failure to move back above the 50-day SMA. Trendline support from the December low has also been broken.
A continued move lower could see the price target the December low around C$1.317, while a close back above C$1.35 would be needed to suggest the price is consolidating once more.
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.