CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

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

Today’s US CPI readings will be key for FX traders, as the dollar continues to remain weak.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
EUR/USD
Source: Bloomberg

EUR/USD heads lower

Upside momentum continues to fade here for EUR/USD, as the price pushes below yesterday’s low. A further decline will bring the $1.1662 level into play. A rally requires a move above $1.19, which would then bring $1.20 and $1.21 into view.

We will likely have to wait until US consumer price index (CPI) and retail sales data this afternoon for further clues as to whether the new week will begin with a bullish or bearish view. 

GBP/USD creates new higher high

Despite a gloomy Brexit press conference yesterday, the pound continues to rally, and has crucially pushed GBP/USD back above the high from last week at $1.3292.

From here the $1.34 area comes into view. A close back below $1.3268 is needed to negate this bullish outlook.

USD/JPY maintains downward momentum

USD/JPY is edging below the lows from earlier in the week at ¥111.97, with it looking like further losses in the direction of ¥111.68 and lower are likely. Below this and ¥110.11 comes into play.

Intraday rallies are likely to keep being sold, with the bearish dimension remaining unless the price moves above ¥113.00.

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.

Find articles by analysts