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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, GBP/USD, USD/JPY

The euro shows no sign of weakening, while cable has come under pressure over the past 24 hours. 

Euro and pouund
Source: Bloomberg

EUR/USD to go higher?

Weakness below $1.1172 for EUR/USD would be the catalyst for selling, so as long as this holds we will look for another push to $1.13 and higher.

In the case of a drop through $1.1172 further support comes into play around $1.1080. 

GBP/USD pressured by poor GDP numbers

Poor GDP numbers and a fresh YouGov poll have piled the pressure on GBP/USD, but it continues to hold the $1.2850 level that has been such a vital support this month.

A bounce from here still leaves the pair in consolidation mode, so we look for the possibility of a return to $1.2965 and higher. Only a close below $1.28 really suggests a definitive bearish development.

USD/JPY getting bearish

The bears have regained control, with USD/JPY dropping below Wednesday’s low of ¥111.46. The next target is ¥110.80, and below this the 200-day simple moving average (SMA) at ¥110.05.

If real bearish momentum develops, we could see a push back to the April lows at ¥108. 

This information has been prepared by IG, a trading name of IG 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. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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