Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

​EUR/USD and GBP/USD tumble, while AUD/USD gains look likely to reverse

EUR/USD and GBP/USD are on the slide, with both markets hitting multi-year lows. Meanwhile, AUD/USD gains could be lost amid a wider downtrend.

Video poster image

EUR/USD hits two-year low

EUR/USD has been on the slide, as dollar strength helps drive the pair into the lowest level since 2017. The hourly chart highlights a clear intraday downtrend that is likely to come back into play, despite a bounce this morning.

As a result, bearish positions are preferred, with a break through $1.0975 required to bring about a more bullish outlook.

EUR/USD price chart Source: ProRealTime
EUR/USD price chart Source: ProRealTime

GBP/USD slumps amid Brexit fears

GBP/USD has seen selling ramp up in anticipation of future volatility, with the prospect of a no-deal Brexit raising fears for sterling bulls. There is plenty of uncertainty ahead, with today likely to be dominated by a vote that could see anti no-deal Brexit MPs wrestle control of the exit process away from the prime minister. Should that pass, we are looking at a likely October general election that will dictate whether we see a no-deal Brexit or not.

For this pair, we are likely to see further downside to come, with the losses seen today taking us into the lowest level since October 2016. Therefore, keep an eye out for this intraday picture, where further losses are expected unless the price breaks through the $1.2077 consolidation high seen yesterday.

GBP/USD price chart Source: ProRealTime
GBP/USD price chart Source: ProRealTime

AUD/USD rebounds after RBA lowers rate cut hopes

AUD/USD has been on the rise this morning, with the decision reached by the Reserve Bank of Australia (RBA) to maintain rates at 1%. That decision also reduced market expectations of an October cut, to the benefit of the Australian dollar. However, the rebound we have seen in this pair has taken us into a key resistance area, with trendline resistance coming into play.

Crucially, given the recent creation of lower highs, there is a good chance we will turn lower from here, with a rise through $0.6729 required to bring about a new bullish outlook for the short term.

AUD/USD price chart Source: ProRealTime

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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. Please see important Research Disclaimer.

Please also note that 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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.