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 weakness lifts EUR/USD and GBP/USD, while stifling USD/JPY rally

US CPI figures yesterday hit the dollar, with the euro and sterling both making some gains against the greenback. Inevitably, this has led to some weakness for USD/JPY.

EUR/USD rallies from March support

Euro bulls will be hoping that EUR/USD can repeat its March feat and bounce from $1.17 in a substantial fashion.

The price is holding that support level for now, although gains are limited. Nonetheless, it gives longs something to trade against, while shorts will wait to see if a reversal develops that takes the price back below $1.17. Further, gains target $1.88 and then $1.194.

GBP/USD bounces from $1.38

Dollar weakness in the wake of US consumer price index (CPI) figures yesterday has allowed GBP/USD to bounce from $1.38, providing hope that the downward move of August has run its course. $1.40 could now be in the sights of longs, which would help to restore a more bullish view.

Sellers will have to wait and see if the price reverses below $1.38, a development that might put $1.36 back into the frame as a downside target.

USD/JPY falters at July highs

Unsurprisingly, USD/JPY has weakened following inflation data yesterday, leaving the ¥110.60 area intact as resistance, as was the case in July.

Bulls will want to see a revival that clears this zone, in order to open the way to more upside, while sellers will be hoping for a reversal below ¥110.00, that confirms a more negative short-term view and targets ¥109.00.

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.

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