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 and EUR/GBP remain bid while USD/JPY weighs on support

EUR/USD and EUR/GBP point higher as UK consumer confidence hits record low while USD/JPY weighs on key support as Japan inflation rate hits seven and half a year high.

EUR/USD tests two-month downtrend line

EUR/USD rallied to its one-month downtrend line at $1.059 following yesterday’s publication of Eurozone construction data which showed the softest pace of growth in construction activity since December. Construction output increased 3.3% year-on-year in March, easing from a downwardly revised 8.9% rise in February.

An advance above yesterday’s high at $1.0607 would engage the early-May high at $1.0642, a rise above which would be encouraging for the bulls and could lead to the mid-April low at $1.0758 being back in the limelight.

Minor support can now be spotted between the April and early-May lows at $1.0483 to $1.0472.

Only a currently unexpected slip through and daily chart close below Wednesday’s low at $1.0461 would put the early-May and January 2017 lows at $1.0350 to $1.0341 back on the cards.

EUR/GBP little changed despite lowest ever consumer confidence data

[currencies:EUR/GBP’s] bullish reversal off Tuesday’s £0.8393 low has taken the cross above the 200-day simple moving average (SMA) at £0.8446, above which it has stayed despite the UK GfK Consumer Confidence indicator hitting an all-time low of -40 in May, below the previous low of -39 set in July 2008, amid growing recession fears and the cost of living crisis.

The 200-day SMA and yesterday’s low at £0.8448 to £0.8446 are expected to act as support today, if retested. In case of failure, the 55-day SMA at £0.8401 would be back in sight, together with the early May low at £0.8368.

A rise above yesterday’s high at £0.8495 would put the late-March high at £0.8512 back on the map. While Monday’s high at £0.8534 isn’t bettered, however, overall downside pressure remains in play.

USD/JPY trades close to four-week lows as Japan inflation rate hits seven and a half year high

USD/JPY is trading at levels last seen at the end of April, close to its late April ¥126.95 low as inflation hits a seven and a half year high in Japan.

Japan’s consumer prices rose by 2.5% year-on-year in April, the most since October 2014, following a 1.2% gain in March. The April figure also marked the 8th straight month of annual inflation, with food prices rising at the fastest pace in seven years.

Failure at the late-April ¥126.95 low would confirm a topping pattern with s slide back towards the March peak and 55-day SMA at ¥125.10 to ¥124.87 being on the cards in this scenario.

Minor resistance can be seen at the 22 April high at ¥129.11 and also at the mid-April and mid-May highs at ¥129.40 to ¥129.78. This resistance area would need to be overcome for the uptrend to resume.

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.