EUR/USD and GBP/USD climb as USD/JPY turns lower

Dollar weakness continues to be felt across FX markets, bolstering EUR/USD and GBP/USD but keeping USD/JPY on the back foot.

EUR/USD rally shows no sign of slowing

The euro continues to make hay against the US dollar. Higher lows and higher highs continue to be seen here for EUR/USD, with the bounces off the rising 50-hour simple moving average (SMA), currently $1.1687, on Thursday and Friday providing proof of the trend’s current strength.

Further gains seem likely, with no sign of any reversal yet developing.

GBP/USD keeps on climbing

After breaking through $1.277 last week the price of GBP/USD has not looked back, surging to $1.29.

Some overnight weakness leaves the uptrend intact however, and it is likely that higher lows will continue to be looked on as possible buying opportunities. A reversal back below $1.277 might suggest some near-term weakness, potentially testing $1.265 again as it did last week.

USD/JPY rebounds towards higher low

An overnight bounce for USD/JPY merely provides fuel for short-sellers as the price rallies back towards the declining 50-hour SMA (¥105.70).

After the straight-line move of last week some form of rebound was to be expected, but it merely provides a better risk-reward for short positions. A rally through ¥106.20 is needed to put a more meaningful dent in the downtrend.

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.

Please see important Research Disclaimer.

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 Monday 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.