CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

EUR/GBP and USD/JPY both renew their declines

The pound continues its ascendancy over the euro, while the dollar is ending 2020 on a weak note against the Japanese yen.

EUR/GBP heads down once more

The last day before the end of the transition period finds EUR/GBP declining, continuing the bearish trend of the past two weeks. After finding resistance around £0.915 the price has fallen back towards the 200-day simple moving average (SMA) £0.8992.

As has been the case throughout the month, the pair then bounce from this indicator, drawing a line in the sand for the bears. A move below £0.895 would be needed to clear the area of support seen over the last four weeks. For the moment, trendline resistance from the mid-December high continues to gap any moves to the upside.

USD/JPY ends 2020 with more losses

The downtrend of USD/JPY shows no sign of ending. After a brief bounce over the past ten days the price has now headed back to the ¥103.00 lows of the past two months.

Below ¥102.87 the price will create a new lower low, confirming the downtrend. As we have seen over the past few weeks, even modest bounces tend to hit a wall of selling, with little sign of any real upside movement.

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

See more forex live prices


See more shares live prices


See more indices live prices

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.