Risk appetite revival lifts EUR/USD, GBP/USD and USD/JPY

Risk appetite has revived, leading to rallies for key FX pairs as the recent jitters about the global monetary policy outlook begin to fade.

EUR/USD rebounds above 50-day SMA

EUR/USD is headed higher once again, having cleared the 50-day simple moving average (SMA) at $1.2156 and now looks set to target the January high at $1.235.

The bullish view has recovered after the uncertainty that persisted from mid-January until this week, but a higher low has been formed and the price is on an upward path once again. Sellers will need to see a drop back below $1.21 and then on to $1.194.

GBP/USD rally keeps on going

There seems to be no stopping the GBP/USD pair, but the yawning gap between the price and the 50-day SMA ($1.37) may become an issue at some point.

A reversal below $1.40 would provide some evidence of a near-term pullback, but for now that has yet to materialise.

USD/JPY surges back to recent highs

The recovery here is complete, and now USD/JPY can look towards a continued bounce that takes it through last week’s highs and towards the August highs at ¥107.

The bullish view is firmly back in place, and sellers have now been shut out once again, having failed to hold the price below ¥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.

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
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.