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/USD, GBP/USD and AUD/USD continue to grind higher

EUR/USD, GBP/USD and AUD/USD grind higher, with traders reacting to the latest UK inflation figure.

AUD Source: Bloomberg

EUR/USD pushing higher in bullish continuation move

EUR/USD looks set to continue its recent resurgence, with the pair seeking to follow up on the four-month high established yesterday.

The recent consolidation has seen the pair attempt to resolve the question of whether we will post a downside retracement of note or simply push higher once again. The failure to break below the $1.0271 signified the latter, with prices pushing upwards once again today.

As such, further gains seem likely, with a move back below the $1.0271 required to signal a potential short-term reversal of the recent spike.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD comes into focus after surge in UK CPI

GBP/USD has similarly been gaining ground in the wake of the risk-on move sparked by Thursday’s US consumer price index (CPI) decline. However, today has seen inflation come back into play today, with the latest UK CPI figure of 11.15% signaling a huge divergence coming into play between the UK and US inflation figures.

Quite whether this will create any divergence in monetary policy remains to be seen, with market pricing in a higher chance of a 75-basis point (bs) rate hike in response. As things stand the market reaction has been muted, with market weighing up any shifts in monetary policy with the expectations of a more prolonged economic downturn in the UK if inflation is not brought under control.

As things stand, GBP/USD looks set for further upside, with a decline through the $1.171 swing low required to bring expectations of a pullback for the pair.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD continues to grind higher

AUD/USD has continued its move higher, with the risk-on sentiment seen throughout markets bringing about a positive phase for this pair.

While last week saw the index spike upwards, we are seeing a more considered approach this week. Nonetheless, this grind higher does look likely to persist unless price falls back through the $0.6663 swing low.

Look out for further volatility ahead, with the latest Australian jobs report due out tomorrow morning.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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

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.