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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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

Increased optimism has seen the euro and sterling rally, while USD/JPY is also on the up.

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EUR/USD surges in early trade

Renewed euro strength early on this morning suggests we may see another attempt by EUR/USD to break the $1.1660 area that stifled upward progress last week.

If this is broken then the August high at $1.1740 comes into view. The cautiously bullish view would be negated by a move back below $1.15.

GBP/USD pushed higher by Brexit optimism

GBP/USD has finally managed to break above the downtrend line from the May highs.

If the price succeeds in closing above $1.3040 then the breakout will target the $1.3205 area. A move back below $1.30 reignites the bearish move and suggests a move back to $1.2773.

USD/JPY rallies sharply

More dollar strength is in evidence for USD/JPY, but a close above ¥112.00 is still needed to suggest a real breakout has occurred.

This would then target ¥113.00 and higher. A bearish view requires a move back below ¥110.40.

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