EUR/USD and GBP/USD move up as USD/JPY weakens

The dollar has edged back down in the wake of Powell’s testimony bolstering EUR/USD and GBP/USD but pushing down USD/JPY.

EUR/USD recovers as dollar weakens

EUR/USD rebounded sharply yesterday from its lows as Jerome Powell’s testimony weakened the dollar. For now the buyers might have a chance to push the price back towards $1.188, and above this a more bullish view may prevail.

A failure to hold yesterday’s gains hands the initiative back to the sellers and brings $1.177 into view.

GBP/USD on the up

A more bullish view continues to prevail here, as GBP/USD moves up from the losses earlier in the week.

Renewed gains target $1.39, and then on to $1.40, with buyers likely to add on weakness on the way up to this latter target. For now the bearish view is in abeyance, but would be revived with a move back below $1.374.

USD/JPY under pressure after Powell testimony

The rally of USD/JPY has stalled as Powell reins in tapering expectations and hits the dollar.

The bounce from the 50-day simple moving average (SMA) last week looks to have been a false dawn, and now we wait to see if the price can hold the 50-day MA (¥109.89) once again. The uptrend from late April is under threat, and a drop below ¥109.60 would be a negative development, although it might not bring it to an end entirely.

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.