CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD and USD/JPY consolidate while EUR/GBP advances

​Outlook on EUR/USD, EUR/GBP and USD/JPY as China vows to stick to Covid Zero policy.

USD/JPY Source: Bloomberg

EUR/USD nears parity

Friday’s EUR/USD surge higher is taking a breather below parity despite September German Industrial Production coming in at a better than expected 0.6% month-on-month (MoM) rise versus -0.8% in August.

EUR/USD short term consolidates below last week’s $0.9976 high and may slip back towards the 55-day simple moving average (SMA) at $0.9887 before having another go at reaching parity above which lurks the late-October peak at $1.0093.

Minor support below the 55-day SMA can be spotted at the $0.9865 early-September low as well as Thursday’s $0.9839 high.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

EUR/GBP continues its advance towards its £0.8867 October peak

EUR/GBP is on track to reach its £0.878 21 October high as the Euro continues to appreciate and as the UK October Halifax House Price Index comes in as expected at -0.4% MoM versus -0.1% in September, its second consecutive monthly slide.

Above £0.878, the 26 and 28 September lows can be found at £0.8853 as well as the October peak at £0.8867.

Minor support below Thursday’s £0.8743 high comes in along the 55-day SMA at £0.8695. Below it lies the early-October low at £0.8649.

EUR/GBP chart Source: IT-Finance.com
EUR/GBP chart Source: IT-Finance.com

USD/JPY rises as China vows to stick to its strict Covid Zero policy

USD/JPY regains some of Friday’s losses amid comments by Chinese officials over the weekend denying that the country was considering easing its strict zero-Covid 19 measures.

A recovery from Friday’s ¥146.56 low, made marginally above its August-to-November uptrend line at ¥146.56, is currently underway with the October-to-November resistance line at ¥148.02 being in focus. Above it lie last week’s highs at ¥148.45 to ¥148.85.

A currently unexpected slip through the three-month uptrend line at ¥146.56 would engage the early-November low at ¥145.68 below which sits the late October through at ¥145.12.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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