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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, GBP/USD rally on weaker greenback while USD/CAD slips

​​Outlook on EUR/USD, GBP/USD and USD/CAD as US dollar takes a hit due to softer US CPI data and recession warnings.

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​​​EUR/USD trades in two-month highs on weaker greenback

​​EUR/USD’s advance from Monday’s $1.0832 low gained upside momentum on a weaker-than-expected US consumer price index (CPI) reading and as the Federal Reserve (Fed) projected a 'mild recession', both pushing the USD dollar down.

​The weaker greenback benefitted the EUR/USD cross which rallied to a two-month high and reached the minor psychological $1.10 mark above which beckons the $1.1033 February peak.

​Support is now seen at the $1.0973 early-April high and then around the $1.0929 late-March high.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD heads back up towards its recent $1.2525 high

GBP/USD recovery rally from Monday’s $1.2345 low gained traction as the US dollar sold off after weaker-than-expected CPI data and the US Fed warning of a mild recession later in the year due to the recent banking turmoil.

​The cross now grapples with the minor psychological $1.25 mark, above which lies the early-April high at $1.2525, a rise above which would target the May 2022 peak at $1.2667.

​Minor support can be spotted between the December and January highs at $1.2448 to $1.2446, above the March-to-April support line at $1.242. Further down sits minor support at Tuesday’s $1.2386 low ahead of Monday’s $1.2345 trough.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/CAD resumes its descent as central bank keeps rates at 4.5%

USD/CAD revisited its early-April low at C$1.3407 as the Bank of Canada (BoC) left its interest rates unchanged for a second straight month at 4.5% in view of falling inflation and because of the stress in the global banking system.

​Once the recent low at C$1.3407 has been slipped through, the early-December low at C$1.3386 will be in focus, and medium-term the February trough at C$1.3263 as well.

​The medium-term bearish view will remain valid as long as no bullish reversal takes the cross above Monday’s high at C$1.3553.

USD/CAD chart Source: IT-Finance.com
USD/CAD chart Source: IT-Finance.com

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