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 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.


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.