FX levels to watch: EUR/USD, GBP/USD and USD/JPY
The losses seen earlier in the week have been shrugged off, as risk appetite continues to recover.
EUR/USD steady ahead of ECB
The price of EUR/USD moved off the $1.134 zone yesterday, and so far this morning a dip down to that area has been met with fierce buying.
If the price continues to bounce, a move back towards the top end of the range is possible.
GBP/USD holds at new two-month high
Developments in the UK Parliament which suggest ‘no deal’ is a much-reduced possibility, have driven GBP/USD's surge.
The pair has formed a rising wedge, with support possible around $1.282. A break of this would likely mark a revival of the downward move, towards $1.2773 and then the $1.26 area.
USD/JPY stuck below ¥110
As with equities, USD/JPY has struggled to make much upward progress so far this week.
Rallies to ¥110.00 continue to hold back progress, but dips to ¥109.20 and ¥109.40 have found buyers. The current uptrend remains in place until the price breaks back below ¥109.00.