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 GBP/USD driven lower, while USD/JPY regains lost ground

Dollar strength sees EUR/USD and GBP/USD head lower, while USD/JPY starts to regain ground.

EUR/USD looks primed for further downside

EUR/USD has been trending lower over the course of June and July, with the pair seemingly on course for another lower low in the coming days.

The latest rebound provided us with a 61.8% Fibonacci retracement, with the price heading lower since. With that in mind, further downside looks likely here and a bearish view holds unless $1.1884 is broken.

GBP/USD heads lower despite BoE-fuelled rebound

GBP/USD enjoyed a period of strength yesterday as comments from Bank of Englang (BoE) members, Saunders and Ramsden, shifted the tone in favour of a more hawkish stance.

That boost appears to have been short-lived, with the pair failing to break through the key $1.3910 level to bring a more bullish outlook. Instead, we are heading back below the 61.8% Fibonacci support level, with the 76.4% threshold next in line ($1.3781). The key here is whether we break back below $1.3742 to bring expectations of another leg lower for the pair. Until then, the ability to react to Fibonacci support will be key in indicating whether we are retracing or simply consolidating ahead of another move lower.

USD/JPY on the rise after BoJ meeting

USD/JPY is finding its feet after a period of weakness, with the pair heading higher off the back of a 76.4% Fibonacci retracement.

An overnight rate decision from the Bank of Japan (BoJ) did little to adjust the monetary policy dials, although they did shift forecasts to predict higher inflation and lower growth. With the price heading higher, we look likely to see further short-term upside, given that this rebound is in its infancy. Nonetheless, we would need to see the ¥110.70 level taken out to provide a wider bullish picture given the recent breakdown.


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.