Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​EUR/USD, GBP/USD and USD/JPY amid depreciating US dollar

​​Outlook on EUR/USD, GBP/USD and USD/JPY as the greenback slips to two-month lows amid falling US yields.

JPY Source: Bloomberg

​​​EUR/USD flirts with late August peak

EUR/USD’s advance is approaching its $1.0945 late August high as the greenback slips to a 2 ½-month low amid falling US yields. If overcome, the late June high at $1.1012 will be next in line, together with the August $1.1065 peak.

​Minor support can be seen around last Tuesday’s $1.0887 high ahead of the $1.0834 July low and the 200-day simple moving average (SMA) at $1.0808.

EU/USD chart Source: IT-Finance.com
EU/USD chart Source: IT-Finance.com

​GBP/USD seems to have shrugged off weak UK retail sales

GBP/USD is seen trading back above the 200-day SMA at $1.2446 below which it slid last week amid weaker-than-expected inflation and retail sales.

A rise above last week’s high at $1.2506 would engage the late August low at $1.2548 ahead of the mid-August low at $1.2617. These levels will remain in sight while Friday’s low at $1.2375 underpins.

​Below it the mid-October high can be made out at $1.2337 and may also offer interim support, were it to be revisited which looks to be unlikely at the moment. Further down minor support can be found at the $1.2288 late October high and along the 55-day SMA at $1.2279. While the next lower 10 November low at $1.2188 isn’t giving way, the October-to-November uptrend will remain intact.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY tops out near the October 2022 peak

​Last week USD/JPY topped out around its October 2022 peak at ¥151.95 and then slid through its July-to-August tentative uptrend line at ¥150.52 as the greenback dropped amid falling US yields.

​On Monday morning the cross also slid through the 55-day SMA at ¥149.26 to a six-week low ahead of this week’s Japan consumer price inflation data out on Friday. The October trough at ¥147.29 is back in the picture provided no bullish reversal takes the currency pair back above Thursday’s high at ¥151.43.

​Minor resistance above the 55-SMA at ¥149.26 is seen around Wednesday’s ¥150.05 low ahead of the breached tentative uptrend line, now because of inverse polarity a resistance line, at ¥150.50.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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.