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

The quiet period for data goes on, resulting in a relatively uneventful session thus far for FX markets.

Euro coin and sterling note
Source: Bloomberg

GBP/USD lower thanks to BoE hinting

Cable’s downward move has been helped along by fresh hints that more easing will be on the way from the Bank of England. As yesterday, we still wait to see if the pair can head back to $1.28, the lows from the beginning of July.

Below here would still point towards the $1.25 level from the mid-1980s. A bounce has to get back above $1.31 and then head towards the August peak just below $1.34.

EUR/USD looks to push lower

Yesterday saw the pair hover above the 200-day simple moving average ($1.1080), and now it looks to push lower, putting the $1.10 area in the frame as the next possible destination.

The problem at present remains that economic data is relatively thin on the ground. Thus dollar strength from Friday’s NFPs is likely to remain the driving factor, potentially putting the uptrend for the year under threat. 

AUD/USD may test April highs

The pair does not look excessively overstretched to the upside, but it continues to falter around $0.7650. Buying dips has made sense for months here, so any weakness into the second half of August is to be welcomed.

A break above $0.7650 would head towards the April high at $0.78. 

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