USD/JPY and EUR/GBP rise while USD/CAD struggles
The dollar is still making gains against the yen, but it is struggling versus its Canadian counterpart. Meanwhile, EUR/GBP is rising following some unexpected weakness in UK inflation.
USD/JPY pushes above ¥148.00
The price of USD/JPY continues to make headway, though a firm close above ¥148.00 continues to elude it in the short-term.
Trendline support from July continues to underpin the rally, and has thus prevented any downside lasting more than one or two days. In the event of a pullback, the price might find support around ¥145.00 or the 50-day simple moving average (SMA).
Additional upside in the medium-term would target the 2022 peak at ¥151.94.
USD/CAD struggles to build on Tuesday’s bounce
Buyers appear to have mounted a bit to halt the pullback from the highs of early September.
USD/CAD rallied off its Tuesday lows, and moved back above the 50- and 100-day SMAs. Buyers now need a close back above C$1.35 to suggest that a low has been formed. This might then allow for a move back towards C$1.37.
A close back below C$1.34 leaves the sellers firmly in charge, and could see further losses in the direction of the C$1.33 level or lower.
EUR/GBP rallies following UK CPI figures
Recent euro strength has seen the EUR/GBP steadily climb from its August low.
Higher lows have been formed over the past month, providing a short-term bullish view. Bigger resistance may lie around £0.867, where gains stalled in July and August.
A close back below £0.859 and the 50-day SMA might suggest that the sellers have reasserted control, though trendline support from the August low would need to be broken to provide confirmation.
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