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 see haven demand

A mixed bag for EUR/USD, GBP/USD, and USD/JPY, with haven demand playing out after Trump contracts coronavirus.

EUR/USD rolling over after recent retracement

EUR/USD has started to turn lower, with the wider risk-off sentiment driving upside for the haven dollar. Given the breakdown seen last week, this recent rise is likely to represent a retracement before we turn lower once again.

The rally took us back towards the 61.8% Fibonacci retracement level ($1.1772), and we are starting to decline from there. A break through the $1.1684 swing low would establish a more reliable sell signal here, highlighting the likely end of this recent upward retracement phase. Until then, there is still a chance of a deeper move towards the 76.4% Fibonacci level. However, in either scenario, a bearish outlook is in play unless we see the pair rise through the $1.1871 swing high.

GBP/USD rallies as hopes of Brexit deal are lifted

GBP/USD has rallied after the news that UK Prime Minister Boris Johnson and the EU’s President Ursula Gertrud Von Der Leyen are set to hold high level talks on Saturday in a bid to break the deadlock.

From a charting perspective, the downtrend seen over the past month remains in play until we see a break through the $1.3007 level. As such, the bias will be determined by whether we break $1.3007 (bullish), or $1.2805 (bearish).

USD/JPY breaks lower as yen dominates haven demand

USD/JPY has moved sharply lower, with the wider bearish trend seemingly coming back into play once more. While the pair had been gaining ground over the course of the past fortnight, the long-term downtrend seen throughout 2020 always looked likely to kick in before long.

On this occasion, we have seen the pair reverse from the 61.8% Fibonacci retracement level following a move into haven assets this morning. While the pair is attempting to regain some of that lost ground, it is likely we move lower from here, with a bearish outlook in place until we see a rise through the ¥105.73 swing high.

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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