CFDs are complex instruments. 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. 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, EUR/GBP and GBP/JPY await FED, BoE and BoJ rate decisions

EUR/USD consolidates, EUR/GBP tries to break through resistance and GBP/JPY remains slightly bid ahead of this week’s FED, BoE and BoJ central bank meetings.

EUR/USD consolidates above its $1.0806 multi-year low ahead of FOMC meeting

EUR/USD keeps holding above Friday and Monday’s $1.0902 low, ahead of this week’s US Federal Reserve (Fed) meeting which is likely to lead to a new cycle of rate hikes with an anticipated 25 basis point (bp) increase in the target Fed funds rate.

Failure at $1.0902 would probably lead to last week’s low at $1.0806 being back in the limelight.

While $1.0902 holds, however, a gradual advance back towards the January low and last week’s high at $1.1121 to $1.1122 may ensue. Together with the two-month downtrend line at $1.1149 this area is likely to cap the upside, though. Further up the 55-day simple moving average (SMA) can be spotted at $1.1264.

EUR/GBP breaks through four-month downtrend line ahead of BoE rate decision

EUR/GBP has broken through its four-month downtrend line at £0.8428 and risen above last week’s £0.8436 high as investors await the outcome of Wednesday’s Bank of England (BoE) rate decision. The market has priced in a third rate hike in a row, taking the base rate to 0.75%.

The February peak at £0.8478 is now in focus, together with the 200-day SMA at £0.8482.

Potential slips should see support at the late February £0.8408 high and also along the 55-day SMA at £0.8362. 

GBP/JPY is heading back up while awaiting BoE and BoJ meetings

GBP/JPY is likely to continue its recovery from the ¥150.98 early March low and targets the one-month downtrend line, early March high and the 55-day SMA at ¥155.08 to ¥155.23 since the BoE is expected to raise rates by another 25 bp while the Bank of Japan (BoJ) is to remain dovish with no change expected.

Minor support is found along the 200-day SMA at ¥153.35 and also between the January and early March lows at ¥152.91 to ¥152.67.

Key support remains to be seen at the current March low at ¥150.98, a slip through which would put the December trough at ¥148.98 back on the map.

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

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.