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.

Dollar weakness lifts EUR/USD and GBP/USD while hitting USD/JPY hard

After a weaker US CPI print yesterday the dollar gained, but this state of affairs has reversed in early trading on Wednesday.

EUR/USD holds 50-day SMA

Hopes of a rebound yesterday with EUR/USD were dashed, but again the price is holding the 50-day simple moving average (SMA) $1.1801, keeping the possibility of a new bounce open.

This would then mark a resumption of the move higher from mid-August, targeting $1.19 and higher. Sellers have been unable to revisit last week’s low, and until they do, the bearish view is cancelled out.

GBP/USD rallies after CPI figures

Cable’s gains in the wake of employment data yesterday with GBP/USD fizzled out after US consumer price index (CPI), but as with EUR/USD the pair has not make a move back to last week’s lows.

Again, the 50-day SMA ($1.3807) continues to provide support, with the price still apparently girding itself for a new move back towards $1.39 following a strong UK CPI reading. A conclusive break lower still eludes the sellers, leaving the bull case intact.

USD/JPY slumps after break below trendline support

USD/JPY weakness has finally precipitated a change here, as the bear case roars back into life.

A classic case of a break of trendline support has seen the price drop sharply, leaving the bears firmly in charge, opening the way to more downside below ¥109.00 unless the buyers can somehow find the strength for a bounce.


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
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.