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.
Established in 1974
Over 185,000 clients worldwide
15,000 markets worldwide

FX snapshot – GBP/USD, EUR/USD, AUD/USD, USD/CAD

Risk assets are being sold across the board this morning, with GBP/USD still reeling from Carney’s speech yesterday.

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.
GBP/USD
Source: Bloomberg

GBP/USD downside continues
Carney’s speech yesterday provided yet more downside fuel for the bears. While key data has given the pair reason to pause around $1.41, further downside seems likely.

Bounces back towards $1.43 will bring out the sellers, and even the 50-hour simple moving average at $1.4226 will be a major task to break through. 

EUR/USD looking to break resistance
The area around $1.0960 stemmed the rally last Friday, so if the move higher of the past two sessions cannot get above here we look to the downside around $1.0860, and then $1.0840. The EUR/USD target for any upside move remains at $1.1030.

AUD/USD falling back
The evaporation of risk appetite has hit AUD/USD hard, pushing back to the lows of the month around $0.6840. The next target becomes $0.6780, with any rally back towards the $0.6890 area highly likely to be viewed as another chance to sell this pair. It would take a move above $0.70 to cancel out the bearish thesis. 

USD/CAD rally continues
This rally keeps on going (for more see Josh’s note from Monday). Pullbacks will keep being bought, with moves back down towards C$1.4530 and then C$1.4450 as an opportunity to re-enter the trade. The next looming target on the upside is C$1.4784.

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.