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 rally as USD/JPY stalls

Dollar weakness continues to drive gains for the euro and sterling, but USD/JPY’s attempts to make headway have been stymied again.

​​EUR/USD powers higher

EUR/USD's climb has seen it return to, and move above, the upper bound of the descending channel.

As we noted earlier in the week, the buyers remain firmly in control, with the bullish view reinforced by Wednesday’s push higher. The next targets to the upside are the July and then June peaks at $1.19 and $1.1975 respectively.

GBP/USD continues its recovery

Gains with GBP/USD have carried the price above trendline resistance from late July, although with the 50-day simple moving average (SMA) at $1.3808 now crossing below the 200-day SMA ($1.381) the view is shifting inexorably towards a bearish view.

A renewed decline heads towards $1.36. Recent gains this week have stalled at $1.3802, so a move above this short-term high is likely to spark further upside.

USD/JPY struggles to push higher

Hopes of a decent move higher yesterday were dashed for USD/JPY as the bounce hit a wall of selling at ¥110.40 as previous rallies this last week have done.

Further gains head towards ¥110.50, the vital area of resistance from July and into early August. For now, the uptrend of August remains intact.

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.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.