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.

FX levels to watch: EUR/USD, GBP/USD and USD/JPY

Sterling is still enjoying a run of gains, but USD/JPY has been hurt by a softer outlook for Fed policy and Trump’s tweets about trade negotiations.

EUR/USD edging higher

The EUR/USD pair rallied off last week’s lows and is now pushing back towards trendline resistance from the March highs, which would suggest resistance around $1.124.

A push above $1.125 would signal a break higher, targeting $1.134 and then $1.145. A move back below $1.12 resumes the downward trend, targeting $1.112 in the first instance.

GBP/USD still in bullish form

The breakout for GBP/USD over the past three weeks remains intact.

Higher lows have been seen since the end of April, with dips to $1.30 and then $1.308 finding buyers. As a result, we have seen an uptrend form. A fresh higher high requires a move above $1.318. The bullish view remains in place until the price falls back below $1.30.

USD/JPY slumps to six-week low

Dovish Federal Reserve (Fed) commentary and the US President Donald Trump trade tweets piled the pressure on USD/JPY over the past few days, with the price dropping to a six week low.

A rebound followed, but the price failed to push on above ¥111.00. Further gains would need to clear this area and then move on to recover ¥111.60. Additional declines target ¥110.40 and then down to ¥109.90.

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.