EUR/USD finally bounces as GBP/USD is lifted by rate hike hopes

The euro has found the strength to rally against the dollar, and sterling continues to gain on expectations of a potential BoE rate hike. Meanwhile USD/JPY has drifted lower after.

EUR/USD finally stages a rebound

A more substantial bounce appears to be in play here with EUR/USD, as the price leaps back above $1.16.

A snap-back rally to at least the 50-day simple moving average (SMA) at $1.1715 seems likely, a counter to the losses of September and October, but any bounce that falters below $1.19 will create a lower high and could simply embolden the sellers once more.

GBP/USD still climbing

Similarly here with GBP/USD, the buyers have it all their own way for now but will need to clear $1.39 to avoid a similar lower high.

It has been a strong bounce, fuelled now by expectations of a Bank of England (BoE) rate hike, but sellers will be looking for a price reversal that breaks the recent run of higher lows and renews the downtrend of the last few months.

USD/JPY edges lower

A drift back from Monday’s high is still in progress,with USD/JPY although it puts only a small dent in the gains made.

Overall the buyers still hold sway, and it will take a dip back below ¥113.00 to suggest something bigger is at hand.

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