GBP/USD rocked by parliament news, while EUR/USD and USD/JPY remain quiet

Reports of parliamentary manoeuvring have sparked volatility in GBP/USD, making up for a quiet session in EUR/USD and USD/JPY.

EUR/USD unable to rally

EUR/USD continued to retrace from its high at the beginning of the week, but also remains above $1.106 and the support zone that has held throughout August.

A short-term bounce today will challenge yesterday’s, around $1.1115. If this continues to hold then a more bearish picture may emerge. A move through this level would then open the way to $1.116 and the high from Monday. Further declines require a daily close below $1.106, which would put a much more bearish spin on the outlook.

GBP/USD volatile on parliament news

GBP/USD’s steady gains continue, as the price created another higher low and higher high in yesterday’s session.

This rally has been impressive, but it puts only a small dent in the losses of the past few months. On the daily chart, a turn back below $1.22 could well confirm that a lower high is in place. Any bounce from around $1.222 could provide another buying opportunity.

USD/JPY stuck below resistance

USD/JPY has failed to hold modest gains, with a descending triangle forming over the past few days.

A break above ¥106 would end this formation on the hourly chart, while further declines will test vital support around ¥105.

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.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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.