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 weaker, as GBP/USD and USD/JPY hold steady

Some of the dollar strength of recent days has abated, stalling the rally in USD/JPY and resulting in a slowdown in EUR/USD’s pullback.

EUR/USD pullback slows

The pace of EUR/USD decline over the past few sessions has slowed, and while the sellers continue to press their advantage, a bigger move below $1.20 still eludes them.

As a result, the bearish view occasioned by the retreat from $1.215 is beginning to lose its strength. A recovery back above $1.205 would help to suggest that a new leg higher has begun.

GBP/USD still struggling below $1.40

GBP/USD remains in the sideways pattern of the past six weeks, although the recovery seen this week has helped to boost hopes of a breakout to the upside above $1.40.

Today’s Bank of England (BoE) meeting is unlikely to provide much in the way of volatility, with GBP/USD’s fate likely resting in the hands of the Federal Reserve (Fed) and further US data this week.

USD/JPY rally stalls

The USD/JPY bounce from the lows at the end of April has slowed, unable to push on above ¥109.40.

Sellers will be watching for a drop back below ¥108.80 that could spark a renewed fall, while buyers will want to see ¥109.50 recovered to open the path to the highs from the end of March above ¥110.50.

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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