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.

Weaker dollar lifts EUR/USD and GBP/USD, putting pressure on USD/JPY

The Fed meeting has removed some of the dollar’s strength, allowing EUR/USD and cable to rally, but leaving USD/JPY out in the cold.

EUR/USD recovers its bullish momentum

The EUR/USD pair shot higher yesterday, returning to the $1.117 level from last week. Dips towards $1.112 may well find support, while a breakout above $1.118 would open the way to the 200-day simple moving average (SMA) at $1.12.

A move below $1.104 would be needed to reinvigorate the downtrend.

GBP/USD continues rebound from $1.280

Having found support around $1.28, the GBP/USD pair has now resumed its march higher. The next target is $1.30, and intraday pullbacks may continue to find buyers. Above $1.304 the price heads towards $1.32.

A close below $1.277 is needed to revive a more bearish view, although even then any higher low above $1.22 might be viewed as a buying opportunity.

USD/JPY edges lower

Post-Federal Reserve (Fed) dollar weakness continues, as the USD/JPY price retreats once again from ¥109.00. This may see a retracement towards ¥107.60, which would still leave the price in a strong uptrend from the August lows.

Intraday support has been found around ¥108.30 over the past two weeks, so if this holds a rebound could develop.


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