EUR/GBP, GBP/USD and USD/JPY trade in low volatility ranges
Outlook on EUR/GBP, GBP/USD and USD/JPY as traders look ahead to Thursday’s Jackson Hole symposium.
EUR/GBP continues to hover above support
Following last week’s sell-off, EUR/GBP continues to stabilize above its £0.8522 to £0.8504 June and July lows, having held there as UK retail sales dropped by a worse-than-expected 1.2% month-on-month (MoM) in July.
Thursday and Friday’s highs at £0.8557 need to be overcome, for a rise back towards the 55-day simple moving average (SMA) at £0.8585 to unfold.
GBP/USD remains within its sideways trading range
Further GBP/USD sideways trading below the 55-day SMA at $1.2766 seems to be in store for Monday as the economic calendar remains empty and traders look towards Thursday’s Jackson Hole symposium for further guidance regarding the US dollar.
Only a rise and daily chart close above the current August high at $1.2819 could technically indicate that a bullish reversal is taking shape. Solid support remains to be seen between the early-and mid-August lows at $1.2621 to $1.2617.
USD/JPY remains below its nine-month high as inflation back up at 42-year high
USD/JPY advance to last week’s nine-month high at ¥146.56 paused as Japan’s inflation rate hit a 42-year high by staying unchanged at 3.3% in July 2023.
Another drop to the June peak at ¥145.07 looks probable but around this level the currency pair is likely to stabilize on Monday, however. Further minor potential support can be seen at the early-August ¥143.89 high. Resistance remains to be seen at last Thursday’s ¥146.56 peak.
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
Live prices on most popular markets
- Forex
- Shares
- Indices
