EUR/USD, GBP/USD and USD/JPY all move higher as markets await US CPI figures
The uptrends in EUR/USD and GBP/USD have been given a lift by USD weakness so far this week, but sentiment remains fragile ahead of inflation figures.
EUR/USD bulls hoping for a higher low
After a recovery above the 50-day simple moving average (SMA) yesterday, EUR/USD has seen little movement so far this morning.
The pullback from the late January highs has found some buying pressure around $1.07, with the potential for a higher low and then a move back to $1.10 now building. This would leave the uptrend intact and point towards additional upside.
Sellers will want to see a reversal back towards $1.05 to bolster a more bearish view, potentially ending the recovery in place here since the beginning of October.
GBP/USD edges up after employment data
Dollar weakness provided GBP/USD with the chance to rally yesterday, but gains over the past week have been capped by the 50-day SMA. Some more gains were seen this morning following the latest UK employment and wage figures.
Should the pair find the strength to move higher, which may come if the dollar weakens post-consumer price index (CPI), then the $1.24 highs from December and January are the obvious first target. Beyond this the May 2022 highs at $1.276 come into view.
A failure to make further gains would see the price drop back to test the 200-day SMA, as it did last week, and then below this the January low around $1.188 becomes the next area of possible support.
USD/JPY hovers around ¥132.00
USD/JPY's rally from the January lows has seen the price move back above the 50-day SMA, though the downtrend is still in place.
A weaker CPI reading could drive a fall in the dollar, potentially opening the way to ¥127.30 and the January lows. A move below this reinforces the downtrend.
Continued upside would head towards the 200-day SMA, broken to the downside back in mid-December.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
