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 head lower as USD/JPY surge continues

Dollar strength continues to push USD/JPY higher, while keeping the pressure on EUR/USD and GBP/USD.

EUR/USD hits two-month low

The retreat continues for the EUR/USD, which sank to a two-month low on Wednesday.

Lower daily highs point towards continued selling pressure, which brings $1.194 and then $1.188 into view as near-term possible support. Alternately we wait for a break back above $1.21 as evidence that a higher low has been formed.

GBP/USD losses accelerate

A deeper pullback appears to be underway here, as the price of GBP/USD drops below $1.366 and looks to push towards the 50-day simple moving average (SMA) at $1.3533, and then down to $1.347.

The tight range-bound trade of late January has finally given way to the downside, as the price retreats from a higher high above $1.37. As with EUR/USD, the procession of daily lower highs points to a market where the sellers have regained control for the time being.

USD/JPY climb continues

A real change of trend could be underway here, as the price of USD/JPY pushes on through ¥104.80 to hit its highest level since mid-November.

¥105.50 is the next target, the early November peak, and while the breakout appears to have changed the narrative, it will be up to the buyers to ensure that a higher low can be established in due course to reinforce the new outlook.

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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