EUR/USD, GBP/USD and USD/JPY all go into retreat

FX markets have been hit by risk aversion, with EUR/USD under particular pressure following fresh weakness in eurozone PMIs.

EUR/USD hit by weaker PMIs

Purchasing managers index (PMI) figures from the eurozone have sent EUR/USD tumbling, with the rally towards $1.107 from mid-September looking like a lower high.

Weakness throughout the month so far found buyers around $1.093, so we may see some support around here, while further declines head towards $1.085. The bearish view remains in pace unless we see a move above $1.112.

GBP/USD creates lower high

After an impressive bounce over the past four weeks, GBP/USD may be headed lower.

Weakness last week found support around $1.24, so a move through this area is needed to confirm the bearish view, but with daily stochastics rolling over momentum appears to be shifting towards the bears. A move back above $1.25 is needed to reverse this impression.

USD/JPY rolls over

The dollar has slipped further this morning, continuing USD/JPY's broadly bearish theme of the past few days.

As with GBP/USD, daily stochastics have rolled over, and moving average convergence/divergence (MACD) may follow it, confirming the bearish view. Rallies towards ¥108.00 may provide intraday selling opportunities, but the bearish view remains in place unless the price close above ¥108.10.


This information has been prepared by IG, a trading name of IG Markets 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.

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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.