Dollar weakness drives GBP/USD to three-month high but takes USD/JPY and USD/CAD lower
The greenback continues to suffer, moving lower as investors continue to move out of the dollar on expectations that the Fed is now at the end of its hiking cycle.
GBP/USD moves to fresh three-month high
The GBP/USD rallied on Tuesday to its highest level since the end of August.
The continued strength in the upward move has negated any bearish view for the time being. Further gains appear to target the $1.28 level, and then on towards the $1.30 and $1.31 levels in the medium-term.
A reversal back below the 200-day simple moving average (SMA) would signal that a more substantial pullback was in the offing.
USD/JPY breaks lower
A second day of heavy losses for the USD/JPY has taken the price back to the November lows.
A test of the 100-day SMA now seems likely, and further declines towards support around ¥145.00 could result. This marks the most significant pullback in the pair since June and July, though the longer-term uptrend is still intact and could be restored if the price establishes a higher low.
In the short-term, buyers would likely view a move above ¥149.00 to be a bullish development which might then see the price head towards ¥152.00 again.
USD/CAD takes further losses
After slumping below support on Friday, the USD/CAD has continued to decline.
Tuesday’s losses have seen the price reach a two-month low. It will now be up to the buyers to establish a higher low in the region of the 100- or 200-day SMAs in order to reassert the uptrend. A close back above the 50-day SMA and above C$1.365 would help to restore a bullish outlook.
Further declines would see the price head on towards the September lows around C$1.34.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
