CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD holds its ground while GBP/USD clings to highs

The euro is managing to hold its ground against the dollar, while the pound remains close to its recent highs.

EUR/USD looks to bounce after holding support

Friday’s furious sell-off found support around $1.104, and EUR/USD has gained ground since then.

The price held above the 200-hour simple moving average (SMA) of $1.1057, and if it can move back above $1.108 then a rally to $1.111 could be in the offing. A move above here could reignite the overall bounce in the pair, especially since it held the double bottom in November around $1.10.

GBP/USD holds close to $1.32

GBP/USD shows little sign of turning lower, although it has slowed its ascent in recent sessions. However, it clings on to the seven-month highs, with $1.32 and then $1.332 the next levels to watch.

Sideways price action over the past few days provides little clear direction, and ahead of the election we may see a deeper retracement towards $1.303, which might provide a more attractive buying opportunity. A breakout above $1.318 would point towards fresh bullish momentum.

USD/JPY decline slows above 50-day SMA

USD/JPY has shown little in the way of bullish momentum over the past week or more, but declines have been halted at the 50-day SMA, with a clear slowdown in bearish momentum.

If the price can reverse back above ¥109.00 then a higher low may be in place, allowing the pair to target ¥109.50 and higher in due course. A close below ¥108.50 would be a bearish development and suggest that the rebound from the August lows might finally be running out of steam.

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.