Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

​​​​EUR/USD and GBP/USD rally, while USD/JPY stalls ahead of FOMC meeting​​​​

​​As markets await the Fed meeting, we have seen further gains for EUR/USD and GBP/USD, while USD/JPY has struggled to move higher.​

Video poster image

EUR/USD hits one month high

EUR/USD has enjoyed a rally over the past four sessions, supported by a bounce off the 100-day simple moving average (SMA) and a rising daily ​​​moving average convergence/divergence (MACD).

​​It has now succeeded in pushing back above the 50-day SMA, and this takes it back to the early February highs around $1.08. From here the price targets the February high just above $1.10.

​The recovery from the support zone around $1.055 revives the bullish view, and it would need a move back below $1.05 to suggest that the sellers are in control once again.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

​GBP/USD climbs after CPI data

​The UK consumer price index (CPI) reading gave the pound a boost against the dollar, in GBP/USD after some weakness on Tuesday.

​​The price has rallied sharply since the beginning of the month, when it hit a low of $1.08. Since then, the surge has carried the price back above the 100- and 50-day SMAs. Now the price targets $1.24, the highs from December and January. From here the May 2022 high at $1.266 comes into view.

​​Bulls appear to be firmly in charge, and it would need a move back below $1.20 to alter this view. The Federal Reserve (Fed) and Bank of England (BoE) meetings take place over the next 30 hours, so there, a heightened risk of volatility for this pair.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

​USD/JPY stalls below 50-day MA

​Dollar weakness has driven USD/JPY back below the 50-day SMA, but some strength has been seen ahead of tonight’s Fed decision.

​Trendline resistance from the March high could see the price falter around ¥133.00, but a move above this level would likely need a more hawkish Fed.

​​A reversal below ¥132.00 would open the way to another test of the lows of this week, and then on to the January lows around ¥127.00.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.