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

Having carried it all earlier this week the US dollar is now easing off slightly. 

Source: Bloomberg

GBP/USD awaiting tomorrow's data

Today sees the gap between yesterday’s UK employment figures and tomorrow’s retail sales. So far, the week has been broadly negative for sterling, with a combination of data and comments from Janet Yellen weighing on the pound.

Over the past few days the pair has been unable to hold above $1.25, so any sign that this is about to happen again could mean another selling opportunity. It will likely take a move back above $1.26 to suggest that a rally is now in the offing. 

EUR/USD heading for a new upward leg?

The pair bounced impressively yesterday, putting the price back above key support at $1.0569 and finishing well off the lows.

Tuesday’s high around $1.0635 could provide some resistance, but a close above this level could mark the start of a new upward leg in EUR/USD. Bears would need to get the price back below $1.0569 to indicate that they are still in charge.

USD/JPY in the lows

A sharp move lower in USD/JPY yesterday raises the prospect that the bounce off the ¥111.9 level is at an end. For now the price is above Tuesday’s low of ¥113.26, but if this gives way then a new lower low will be created.

Buyers would need to step in soon to turn this current dip into a higher low, with the aim being a move back in the direction of ¥115. 

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about