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.

Fresh USD weakness lifts EUR/USD and GBP/USD, while pushing down USD/JPY

Despite some comments from FOMC members about needing to push on with hikes, the dollar has edged down again.

USD Source: Bloomberg

​​EUR/USD prepares to test $1.04 again

EUR/USD attempted bounce yesterday was stymied by a strengthening dollar, but it has moved up again in early trading.

An area of resistance is developing around $1.04, so a move above this zone is needed to open the way to additional upside, allowing the price to build on the bounce from the September lows.

This would then bring $1.064 into view. A move below $1.02 is needed to suggest that the downtrend could be returning.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD moves up in early trading

The buyers are attempting to take control again with GBP/USD after two days of losses, setting up an attempt to clear the 200-day simple moving average (SMA) $1.217.

A bounce from current levels would help to put the pair back on an upward footing and restore the bounce from the September lows. Additional upside would target $1.225, the August high, and then on to the June high at $1.2366.

A reversal below short-term trendline support and below $1.19 might point towards some more short-term consolidation, and then bring the 100-day SMA into view.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY drops back despite Fed comments

Despite a bounce yesterday, USD/JPY is under pressure once again, heading back towards yesterday’s lows.

Additional declines would bring the ¥135.00 level into view, followed up by the 200-day SMA.

It would need a move back above ¥142.50 to suggest that a bounce is in play, with a break above trendline resistance from the October highs.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

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.

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. Please see important Research Disclaimer.

Please also note that 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.

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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.