EUR/USD and GBP/USD rally as USD/JPY falters

In the wake of Jackson Hole the dollar has weakened, allowing EUR/USD and GBP/USD to move up while holding back USD/JPY.

EUR/USD surge keeps on going

The rebound with EUR/USD continues, marking a strong recovery from the lows of two weeks’ ago.

Further gains head towards trendline resistance from the June peak, and then on to $1.19 and $1.196. Sellers have yet to see much in the way of a decisive break lower, and will have to wait to see whether bullish momentum begins to ease in coming sessions.

GBP/USD heads to trendline resistance

The bounce of the past week with GBP/USD has neared trendline resistance from the August highs, which could point towards a renewed turn lower, but for the time being the sellers remain firmly in control.

Further gains target $1.385, and then on towards $1.40. At present there is little price action to suggest a near-term lower is at hand.

USD/JPY edges back from Monday gains

A turn lower with USD/JPY in early trading reverses some of Monday’s gains, and raises seller hopes that the price may move below the lower bound of the current triangle formation, amplifying the bearish view.

Alternately a recovery above ¥110.20 would put the buyers back in charge.

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.