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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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. 69% 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.

​​EUR/USD, GBP/USD slip and USD/JPY rises as US dollar regains lost ground

​​Outlook on EUR/USD, GBP/USD and USD/JPY as the US dollar stages a recovery rally amid stabilizing Treasury yields.

JPY Source: Bloomberg

​​​EUR/USD slips through uptrend line

EUR/USD’s reversal off Wednesday’s four-month high at $1.1017 gained traction on weaker-than-expected eurozone inflation data which brought forward European Central Bank (ECB) rate cut expectations for next year and led to a sharp drop in bond yields.

​The fall through the October-to-November uptrend line at $1.0923 has the 22 November-low at $1.0853 and the July-low at $1.0834 in its sights. Together with the 200-day simple moving average (SMA) at $1.082 this area is expected to act as support, though.

​Resistance above the breached uptrend line, now because of inverse polarity a resistance line, at $1.0923 can be spotted at the $1.0945 late August-high. Further up sits the 21 November-high at $1.0965.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD comes off near three-month high

​Earlier this week GBP/USD made a near three-month high at $1.2733 before losing upside momentum and slipping back to its steep November uptrend line which so far offered support.

​A fall through Thursday’s low at $1.2604 would put the late June low at $1.2591 on the map, below which the late August-low sits at $1.2549.

​Resistance above this week’s high at $1.2733 lies at the late August peak at $1.2746.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/JPY’s recovery off its ¥146.68 low is ongoing amid weak Japan data

USD/JPY’s recovery from this week’s low at ¥146.68 is ongoing as Japan factory activity shrinks the most in nine months with the one-month resistance line at ¥148.68 being eyed.

Further up sit minor resistance at the ¥148.81 late October low and the ¥149.20 early November low.

​Support below Friday’s ¥147.60 low can be seen at the ¥147.29 October trough ahead of this week’s ¥146.68 low.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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.

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