EUR/USD and GBP/USD in retreat as USD/JPY rallies
Dollar strength post-FOMC is bearing down on the euro and sterling, but has given the greenback a new lease of life against the yen.
EUR/USD suffers sharp fall
The Federal Reserve (Fed) meeting gave the dollar a lift and has driven EUR/USD to its lowest level since the second half of April.
The sellers do appear to have the upper hand, although the downward move now faces challenges at $1.194 and $1.188. Below this the April low at $1.17 comes into view. A recovery back above $1.19 might spell the beginning of at least a short-term bounce.
GBP/USD retracement potentially limited?
The losses have been somewhat more measured here, but GBP/USD has fallen out of the trading range of May and June, towards the 100-day simple moving average (SMA) at $1.1937.
This remains within the broader uptrend, however, with previous higher lows in the $1.37/$1.38 area yet to be challenged in any meaningful way. Dip buyers will be on watch for a recovery above $1.402 and the 50-day SMA that could spell another move higher.
USD/JPY rallies after FOMC meeting
Jerome Powell has finally given USD/JPY the boost it needed, as the pair rallied to a higher high on changed expectations regarding Fed policy.
The April peak at ¥110.96 is now back in sight, while the bounce from the June low at ¥109.16 remains in place and leaves the buyers firmly in charge.
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