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

The pound is fighting to hold $1.26, while the euro’s gains continue.

Dollar and sterling notes
Source: Bloomberg

GBP/USD rallies on political news

David Davis’s suggestion in parliament yesterday that the UK might pay for single market access caused the pound to rally, once again indicating it is political news that is having the main effect here.

However, despite the bounce GBP/USD fell back from its mid-November high at $1.2650. If the price remains below here then a move back to $1.25 cannot be ruled out.

A close above $1.2650 targets $1.2865.

EUR/USD upward move continues

A strong performance yesterday means the move upwards here remains intact.

The next areas to watch are $1.0714 and then $1.0825.

Dips this week back to $1.0550 and $1.0525 have brought out fresh buyers.

USD/JPY still in retreat

Dollar-yen continues to retreat from its highs near ¥115. A close below Y113 is likely to trigger a move down to ¥111.44, and then potentially on to ¥110.

A turnaround today would see the pair test ¥115 again and then head on to test ¥116.90.

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.