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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% 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 finally bounces as GBP/USD is lifted by rate hike hopes

The euro has found the strength to rally against the dollar, and sterling continues to gain on expectations of a potential BoE rate hike. Meanwhile USD/JPY has drifted lower after.

EUR/USD finally stages a rebound

A more substantial bounce appears to be in play here with EUR/USD, as the price leaps back above $1.16.

A snap-back rally to at least the 50-day simple moving average (SMA) at $1.1715 seems likely, a counter to the losses of September and October, but any bounce that falters below $1.19 will create a lower high and could simply embolden the sellers once more.

GBP/USD still climbing

Similarly here with GBP/USD, the buyers have it all their own way for now but will need to clear $1.39 to avoid a similar lower high.

It has been a strong bounce, fuelled now by expectations of a Bank of England (BoE) rate hike, but sellers will be looking for a price reversal that breaks the recent run of higher lows and renews the downtrend of the last few months.

USD/JPY edges lower

A drift back from Monday’s high is still in progress,with USD/JPY although it puts only a small dent in the gains made.

Overall the buyers still hold sway, and it will take a dip back below ¥113.00 to suggest something bigger is at hand.

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