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.

Rising dollar boosts USD/JPY but sends EUR/USD and GBP/USD sharply lower

The greenback is enjoying some notable strength, which is helping the currency to an 18-month high against the yen, while causing sharp losses for the euro and sterling against the US currency.

EUR/USD hit hard on rising dollar

The sellers are firmly in control here as the EUR/USD price slumps to its lowest level in over a year.

Having broken below a series of support levels the next target may well be $1.144 and then $1.139, last seen in June and July 2020. So far there is no sign of any recovery, which would require at least a move back above $1.17.

GBP/USD slumps as greenback strengthens

Dollar strength has made itself felt here too, pushing GBP/USD to its lowest level for the year.

A wide gap to the next potential support level at $1.32 now looms, with short-term rallies likely to provide further selling opportunities so long as the price remains below $1.36.

USD/JPY rallies to fresh highs

The dollar continues to climb, boosting USD/JPY to its highest level since February 2020.

How far this move goes before it weakens remains to be seen, but elevated stochastics point towards strong bullish momentum. Some retracement back in the direction of ¥111.50 might provide a further buying opportunity.

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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