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.

EUR/USD, GBP/USD and USD/JPY all in retreat

Risk aversion is being felt across FX markets, as the dollar rises versus the euro and sterling, but gives way against the yen.

EUR/USD reversal continues

The downtrend of the past week goes on, as the EUR/USD price heads back to the lows of last week at $1.082. Further losses bring $1.077 into view, the lows from early April.

As we saw on Friday and again yesterday, the price is so far unable to break above $1.089, a key area of resistance over the past week. Until this is broken to the upside, further gains seem unlikely.

GBP/USD downtrend gathers pace

It is a similar outlook for GBP/USD, as the downtrend from last week’s peak at $1.265 continues. Lower highs and lower lows remain in place.

Some strength in Monday’s session ran out of steam at $1.248, hitting trendline resistance. While the price is attempting to push higher in the early part of Tuesday’s session, it will need to clear $1.248 to provide a more bullish view. Further declines head towards $1.231 and $1.22.

USD/JPY struggles to hold its ground

Since Friday we have seen sellers continue to bear down on the price of USD/JPY, with short-term bounces coming under pressure.

Repeated attempts yesterday to break short-term resistance failed yesterday, and further declines towards ¥107.00 and lower seem likely. A rally through ¥107.90 would provide a more bullish short-term view.

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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