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 move higher but USD/JPY comes under pressure

FX markets have been calm in early trading, but sterling has managed to make a small dent in recent losses against the dollar.

EUR/USD edges towards $1.19

The steady recovery from the lows of last week continues for EUR/USD, but it is beginning to show signs of slowing down.

Short-term weakness may encounter support around $1.17, but unless this level is broken any bigger drawdown is unlikely. Meanwhile, further gains continue to target $1.20.

GBP/USD rises off support

The precipitate downward move appears to have halted for now for GBP/USD. A bounce from $1.277 does not yet change the overall negative view; this would require a move above $1.29, breaking trendline resistance from the September peak.

This would then bring $1.303 and $1.32 into view. A drop below $1.277 signals a resumption of the downward move.

USD/JPY steady after decline

A drop early on in Tuesday’s session saw the USD/JPY pair take out last week’s low, but for now it has found support at ¥105.50.

Below this ¥105.24 and then ¥104.80 come into view. The broader downward move is still in place, with a rally above ¥106.50 needed to provide evidence of any upward momentum.

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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