CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Dollar strength hits EUR/USD and GBP/USD but sends USD/JPY flying

EUR/USD’s run of losses has continued, while USD/JPY has hit its highest level since late August.

EUR/USD reversal gathers pace

While equities have rebounded, the same cannot be said for EUR/USD, which has continued to fall, moving below Friday’s low as the sellers come in.

Short-term trendline support from the February low is now broken, which opens the path to $1.195 and lower. Intraday rallies have been sold over the previous two sessions, which points towards continued losses unless the price can recover $1.215 at the least.

GBP/USD mixed in early trading

GBP/USD has managed to hold above Friday’s low, but the bounce has not managed to achieve much more than that.

Continued gains above $1.40 will help to revive the bullish view, while the sellers will have reasserted control if they can drive below Friday’s lows at $1.3885. However the pair is still firmly in an uptrend so for now this is still a pullback rather than the beginning of something more extended.

USD/JPY soars to new six-month high

USD/JPY was last around this level in late August last year, and was then on a firm downtrend lower. Now it approaches it having rallied hard from the January low and at a new higher high in this uptrend.

The buyers are firmly in control and have ¥107 in their sights, the highest level since mid-August. Having rallied 170 points in the past week some consolidation might be expected, while the bearish view would require a dramatic reversal to negate the generally bullish view here.

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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