Skip to content

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.

​​​EUR/USD, EUR/GBP await ECB rate decision while GBP/USD finds support​​​

​​Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of the ECB rate decision, US retail sales and PPI.

Euro Source: Bloomberg

​​​EUR/USD hovers above 3-month low ahead of ECB decision

EUR/USD continues to hover above its early September low at $1.0687 ahead of the European Central Bank’s (ECB) rate decision today in which another rate hike may be seen.

​EUR/USD needs to rise above this week’s high at $1.0769 in order to attack the 200-day simple moving average (SMA) at $1.083 and the July low at $1.0834.

​Failure at $1.0637 would lead to the May low at $1.0636 being targeted.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

EUR/GBP traders await ECB rate decision

EUR/GBP remains within its June-to-September sideways trading range, now above the 55-day SMA at £0.8583 as traders await the ECB’s rate decision.

​Only a rise above Wednesday’s high at £0.863 would put the $0.8658 to $0.8669 June and August highs in to the frame.

​Slips through the 55-day SMA could lead to a slide towards Monday’s low at £0.8559. Further down lies the September low at £0.8524 which was formed close to key support seen between the £0.8522 to £0.8504 June and July lows.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

​GBP/USD holds above the 200-day SMA

GBP/USD remains above its 200-day SMA at $1.2434, which held the cross on Wednesday, despite UK house price balance hitting a 14-year low. It measures the gap between the percentage or respondents seeing rises and falls in house prices.

​A slip through Wednesday’s low at $1.2435 may lead to the next lower June low at $1.2369 to be reached.

​Resistance remains to be seen at the $1.2549 late August low and Monday’s high and then also at the $1.2591 June low. While next higher resistance at $1.2819 isn’t overcome, the medium-term trend remains bearish, though.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

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.

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
  • Try a risk-free trade
  • 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

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.