EUR/USD and GBP/USD fall but USD/JPY rallies

The dollar is in strong form this morning, rallying against the euro, sterling and the Japanese yen.

EUR/USD edges lower after Wednesday’s losses

EUR/USD suffered heavily yesterday and despite a rebound overnight is slipping lower once again this morning.

Yesterday’s drop carried the price to the support zone around $1.094, where bounces materialised in September, so we may see some bullish momentum develop here. However, the downtrend is firmly in place, and as a result a move below $1.092 would carry the price below this support zone and target $1.085, the low from May 2017.

GBP/USD under heavy pressure

GBP/USD has continued its reversal from $1.25, falling below $1.24 yesterday.

As with EUR/USD, the price rebounded slightly overnight, but is losing ground once again as the longer-term downtrend reasserts itself. Further declines head towards $1.227, and then on towards $1.20. A move back above $1.25 is needed to reassert the bullish view.

USD/JPY recovers its upward momentum

After several days of declines USD/JPY rebounded yesterday, stabilising around the 50-day simple moving average (SMA) of ¥107.06. If this can form a higher low, then a push above yesterday’s high will reinforce the bullish view and take the price on towards ¥108.40.

Bears will want to see a move below ¥107.50 in the short term, to revive the push towards ¥107.00 and revive the pullback that began at the end of last week.

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
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.