EUR/USD, GBP/USD and USD/JPY all in retreat

Risk-off dominates FX markets once again, with the dollar in favour over the euro and sterling, and the yen rising against the greenback.

EUR/USD on the back foot ahead of ECB meeting

The prospect of the European Central Bank (ECB) easing has helped intensify the downside in EUR/USD today, as the broader pullback of the past few days intensifies.

It has been relatively orderly thus far, with lower highs and lower lows in place over the past three days. A move below $1.125 would likely open the way to $1.11, while a more bullish short-term view requires the price to clear $1.135.

GBP/USD continues to drop as dollar revives

The sharp rebuff on Monday at $1.32 for GBP/USD has been followed up by steady declines which have taken the price back to the early March zone of support around $1.276.

Yesterday’s bounce to $1.2975 brought out the sellers, establishing a firm lower high, and further declines target $1.27 and then $1.2589. The pair needs to clear $1.295 to provide a more bullish view.

USD/JPY resumes its downward move

The brief rebound from the Monday lows for USD/JPY appears to be at an end.

Unlike other markets, this one did close its gap from the beginning of the week, but that merely provided a selling opportunity up at ¥105.60 and then lower highs since then. Fresh losses below ¥103.00 target ¥101.20.

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