Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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. 77% 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 and GBP/USD recover further from multi-decade lows while EUR/GBP stalls

​EUR/USD and GBP/USD regain more of their recent losses while EUR/GBP looks to be capped.

​​EUR/USD probes resistance after last week’s 75-basis point ECB rate hike

EUR/USD continues to flirt with its $1.0079 to $1.0097 late July low and late August highs following last week’s European Central Banks (ECB) unprecedented 75-basis point (bp) rate hike and Bundesbank President Joachim Nagel stating over the weekend that the ECB will need to continue raising interest rates if high inflation persists.

With policymakers pursuing a hawkish stance and reportedly prepared to deliver another massive 75bp rate hike in October, the Euro is likely to revisit last week’s high at $1.0113. If overcome, the 55-day simple moving average (SMA) at $1.0146 and perhaps the 17 August high $1.0203 may be reached next.

Minor support comes in around parity, a psychological level market participants keep an eye on.

EUR/GBP continues to flirt with the July peak

Last week EUR/GBP rallied to £0.8711, close to its June peak at £0.8721, following the ECB’s 75bp rate hike in September before consolidating. On Monday morning the cross continues to trade near the July and early September highs around £0.8677 while retaining a slightly bullish bias as UK gross domestic product (GDP) grows by a less than expected month-on-month (MoM) 0.2% in July, industrial production drops by -0.3% (versus an expected 0.4%) and manufacturing production comes in weaker than expected at 0.1% (instead of a forecast 0.3%).

While Thursday’s intraday low at £0.8655 underpins, an immediate upside bias should be maintained. A rise and daily chart close above the June peak at £0.8721 would mean a significant break out of a key resistance zone and would open the way for the £0.8797 early February 2021 high to be reached.

Were a reversal to the downside to unfold, though, and Thursday’s low at £0.8655 to give way, another interim top would likely be formed with the current September low at £0.8567 being back in the firing line. The fact that negative divergence can be spotted on the daily relative strength index (RSI) points to the toppish scenario remaining the more likely one.

GBP/USD recovers further from its 37-year low

GBP/USD recovers further from last week’s $1.1406 low, a level last traded in 1985, amid a postponed Bank of England (BoE) meeting due to Her Majesty Queen Elizabeth II’s passing last week and a period of national mourning being adhered to in the UK. The next BoE meeting will now take place on Thursday the 22 of September instead of this Thursday.

With the UK showing its smallest trade shortfall since last December with its trade deficit narrowing to GBP 7.8 billion in July from GBP 11.4 billion in the previous month while imports of goods and services to the UK fell by 1.6% from a month earlier, GBP/USD continues to rise.

A minor bullish trend reversal is taking place with the July and 23 August lows at $1.1718 to $1.1761 being in focus. Potential slips below the 6 September high at $1.1609 should find support around the $1.15 mark which acted as support in early September.

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.

" edit-mode="false" style="--live-prices-table-rows:5" >


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.