FX levels to watch – EUR/USD, GBP/USD, USD/JPY

Poor data continues to weigh on sterling, while USD/JPY’s ascent continues. 

Source: Bloomberg

EUR/USD back on a downward trajectory

Having turned lower from $1.1740 earlier in the week, and then edging below the 13 July low yesterday, EUR/USD looks like it may well move below $1.16.

This sustained bearish view then suggests a move back towards support around $1.15. A bullish view requires a move back above $1.1750.

GBP/USD falls to lows of the week

Data so far this week, particularly consumer price index (CPI) yesterday, has not done much to reinforce the idea that the Bank of England (BoE) will raise rates in August, impacting GBP/USD.

The price is testing the area around $1.3020, the lows of yesterday’s session. Below this, the lows of August 2017, around $1.2773, come into view.

USD/JPY rally revives

Dollar bulls are taking charge of USD/JPY once again this morning, pushing the price back to the highs of the week.

Intraday dips continue to be bought, with the price targeting ¥113.14, and then on to ¥113.70. A short-term bullish view requires a move back below ¥112.67, which would suggest a move back to support around ¥112.20. 

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