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, GBP/USD and USD/JPY stronger ahead of US jobs report

The euro is struggling to hold gains following the ECB meeting, but USD/JPY is rising ahead of the monthly non-farm payrolls.

EUR/USD falters after ECB meeting

The price of EUR/USD rallied after yesterday’s European Central Bank (ECB) meeting did not give an explicitly dovish view. Though with the ECB president still leaving open the door to more quantitative easing (QE) the pair was unable to hold on to all its gains.

Fresh gains will target $1.1326, with a daily close above this level needed to break resistance. A turn lower below $1.12 would suggest a decline to $1.112 is in the offing.

GBP/USD still clawing its way higher

Twice this week rallies to the $1.274 area have faltered for GBP/USD, as also happened on 27 May.

A drop back to $1.27 overnight found support, so we look for a push towards $1.274 again, with a break above here needed to establish a new higher high. A move below $1.264 would begin to signal that the bounce is over.

USD/JPY tiptoes higher

Having bounced from ¥107.70, the price of USD/JPY has made modest gains, although it has not managed to put much of a dent in the sharp drop at the end of May.

The short-term bullish view persists so long as the price remains above ¥107.00, but until the price recovers ¥109.50 then the outlook is mixed at best.

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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