Skip to content

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, EUR/GBP and USD/JPY stabilise ahead of US CPI data release on Tuesday

​​Outlook on EUR/USD, EUR/GBP and USD/JPY in quiet trading.

Video poster image

EUR/USD dips to one-month low but tries to recover

EUR/USD's swift sell-off from its $1.1033 early-February high has taken it to a one-month low below last week’s $1.067 low amid an appreciating US dollar, pushed upwards by the prospect of still higher US interest rates being seen.

​Last week’s attempt of a minor recovery to $1.079 has been followed by further weakness in the currency pair as the US University of Michigan consumer sentiment on Friday rallied to a thirteen-month high of 66.4 in February of 2023, from 64.9 in January, beating market expectations of 65. The cross has thus for the first time since early November slipped below the 55-day simple moving average (SMA) at $1.069 and eyes the early-December high at $1.0595 and the $1.0574 mid-December low.

​While the bullish reversal takes EUR/USD above Thursday’s high at $1.079, further downside remains in store. Below this levels lies the previous $1.0715 to $1.0766 support zone, now because of inverse polarity resistance area, made up of the mid- to late-December highs and mid-January low.

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

​EUR/GBP tries to stabilise after five consecutive days of losses

​EUR/GBP’s five-day slide from its early-February high at £0.8978 has taken it to last week’s low at £0.8824 from which it is trying to recover, having last week narrowly avoided a recession in the UK as Q4 preliminary gross domestic product (GDP) came in unchanged month-on-month (MoM).

​The cross now trades back around its 25 January £0.8852 high and may revisit the £0.8877 late-December high, above which lies the £0.8897 January peak, both of which are expected to act as resistance, should they be reached.

​Support below last week’s low at £0.8824 comes in along the January-to-February support line at £0.8822 and then at the 9 January low at £0.8769.

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

​USD/JPY bounces off last week’s low on surprise new BoJ governor nomination

USD/JPY’s slip to a one-week low at ¥129.80 on the back of the surprise nomination of Kazuo Ueda as the next Bank of Japan (BoJ) governor, has been followed by a bullish Hammer candlestick reversal and a rise earlier today towards the 55-day SMA at ¥132.49 ahead of Tuesday’s widely anticipated US consumer price index (CPI) data release.

​While the moving average, and more importantly the current February high at ¥132.90 cap, another down leg may be formed. A rise above ¥132.90 would put the major ¥133.63-to-¥134.77 resistance zone on the cards, however. It contains the early-December low and late-December as well as January highs. While it isn’t overcome, the medium-term downtrend will remain in play.

​Minor support can now be seen at the 24 January high at ¥131.12.

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.

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
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 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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.