FX levels to watch – GBP/USD, EUR/USD, USD/JPY

A quiet week has started with the trends from last week broadly intact. Low volumes could boost volatility, although macro drivers are few and far between.

Pound sterling coin and dollar note
Source: Bloomberg

GBP/USD driven by US data

After quiet trading last week, the shortened final week has seen sterling push lower versus the US dollar. A rally back to $1.23 brought out the sellers, and it looks like a test of the key $1.2220 area may be in store.

A lack of UK data this week will mean that it is the limited flow of US news that will drive the pair. A move through $1.23 would target $1.2314 and then $1.2394. 

EUR/USD undone by dollar strength

The pair clambered off multi-year lows last week, but early trading today has seen a resurgent US dollar unwind some of the ground gained. It looks like the area between $1.0470 and $1.05 will provide significant resistance. Downside targets lie around $.10420 and then $1.0360.

USD/JPY weakness appears to have given way

The weakness at the end of last week seems to be giving way to some USD strength here. The next areas to watch for potential resistance are ¥118.10 and then ¥118.60, while the ¥116.80/¥117 area is the first area of possible support, followed by ¥116.21. 

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.