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

Cable was unperturbed by CPI yesterday, so investors wait to see what impact employment figures will have. 

Dollar and pound
Source: Bloomberg

EUR/USD turns lower again

A further day of losses yesterday saw EUR/USD bounce from $1.1740, but then turn lower once more. Any rally needs to take out the $1.1780 high from Tuesday, which would allow the pair to contemplate a move to the $1.1820 high from Monday’s session.

A drop through yesterday’s low would bring the $1.1662 level back into play as potential support.

GBP/USD holds above previous lows

Consumer Price Index (CPI) data yesterday failed to provide much inspiration for GBP/USD, so we wait to see if employment data can provide any greater catalyst. The price is holding above yesterday’s lows of around $1.3150, but any rally over the longer-term needs to break above the $1.3350 highs from last week.

Otherwise, a drop towards the $1.30 level and the post-March rising trendline is a distinct possibility.

USD/JPY gains strength from bounce

The bounce off ¥111.68 on Monday has given USD/JPY the strength to rally further. The highs of ¥113.00 and then the ¥113.50 from earlier in the month are now in sight.

A daily close below ¥111.50 would be needed to reverse the bullish outlook. For now, it seems that intraday dips will continue to find buyers.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts

Find out more about