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 falls, while GBP/USD stuck below resistance and USD/JPY pushes higher

Forex markets have seen the dollar gain in popularity, but the rise in USD/JPY might suggest that the panic over a US recession may be coming to an end.

EUR/USD in retreat as risk appetite wanes

The EUR/USD pair has finally fallen back from $1.12, having tried to hold this line for some time.

Further declines seem likely, with a rally towards $1.115 running out of steam. A failure to move back above $1.117 would signal that the bearish view is still in place, targeting the August low around $1.103.

GBP/USD still unable to break $1.21

Gains this week have run out of steam around $1.21 for GBP/USD, so if this continues to hold as resistance then a push below $1.2 seems likely.

Above $1.21, the price heads towards £1.22, key resistance in the early part of August. Looking to the longer term, a rebound towards the 50-day simple moving average (SMA) at $1.2453 is likely to be viewed as a gift for sterling bears.

USD/JPY stands apart from equity turmoil

USD/JPY has been trying to shake off the turmoil of the week so far, and it is interesting to note that while equities seem poised for further downside, this currency pair continues to hold the lows of earlier in the week and have succeeded in creating a higher low at ¥105.70.

Further gains target ¥107.00, with a break above this level signalling a bigger rebound. A move back below ¥105.50 signals that the sellers are back 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.