Skip to content

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.

FX levels to watch – GBP/USD, EUR/USD, USD/JPY

Having carried it all earlier this week the US dollar is now easing off slightly. 

Euro
Source: Bloomberg

GBP/USD awaiting tomorrow's data

Today sees the gap between yesterday’s UK employment figures and tomorrow’s retail sales. So far, the week has been broadly negative for sterling, with a combination of data and comments from Janet Yellen weighing on the pound.

Over the past few days the pair has been unable to hold above $1.25, so any sign that this is about to happen again could mean another selling opportunity. It will likely take a move back above $1.26 to suggest that a rally is now in the offing. 

GBP/USD price chart

EUR/USD heading for a new upward leg?

The pair bounced impressively yesterday, putting the price back above key support at $1.0569 and finishing well off the lows.

Tuesday’s high around $1.0635 could provide some resistance, but a close above this level could mark the start of a new upward leg in EUR/USD. Bears would need to get the price back below $1.0569 to indicate that they are still in charge.

EUR/USD price chart

USD/JPY in the lows

A sharp move lower in USD/JPY yesterday raises the prospect that the bounce off the ¥111.9 level is at an end. For now the price is above Tuesday’s low of ¥113.26, but if this gives way then a new lower low will be created.

Buyers would need to step in soon to turn this current dip into a higher low, with the aim being a move back in the direction of ¥115. 

USD/JPY price chart

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.

Find articles by writer