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 and GBP/USD climb as USD/JPY turns lower

Dollar weakness continues to be felt across FX markets, bolstering EUR/USD and GBP/USD but keeping USD/JPY on the back foot.

EUR/USD rally shows no sign of slowing

The euro continues to make hay against the US dollar. Higher lows and higher highs continue to be seen here for EUR/USD, with the bounces off the rising 50-hour simple moving average (SMA), currently $1.1687, on Thursday and Friday providing proof of the trend’s current strength.

Further gains seem likely, with no sign of any reversal yet developing.

GBP/USD keeps on climbing

After breaking through $1.277 last week the price of GBP/USD has not looked back, surging to $1.29.

Some overnight weakness leaves the uptrend intact however, and it is likely that higher lows will continue to be looked on as possible buying opportunities. A reversal back below $1.277 might suggest some near-term weakness, potentially testing $1.265 again as it did last week.

USD/JPY rebounds towards higher low

An overnight bounce for USD/JPY merely provides fuel for short-sellers as the price rallies back towards the declining 50-hour SMA (¥105.70).

After the straight-line move of last week some form of rebound was to be expected, but it merely provides a better risk-reward for short positions. A rally through ¥106.20 is needed to put a more meaningful dent in the downtrend.

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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