Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Dollar on the rise for EUR/USD, GBP/USD, and USD/JPY

US dollar strength continues to play out across EUR/USD, GBP/USD and USD/JPY despite positive news on US stimulus package.

​EUR/USD continues its decline, as dollar strengthens

EUR/USD has continued its decline this morning, with the pair dropping into a fresh three-month low today. That sell-off is part of a dramatic period of weakness over the course of March thus far.

Further downside does look likely before long, with a rise through the $1.1932 level required to bring a wider pullback into play. Until then, another move lower is on the cards.

GBP/USD stabilises after decline through support

GBP/USD is consolidating after a sharp decline towards the back end of last week. That stabilisation comes off the back of a drop below $1.383, bringing an end to the uptrend to form a head and shoulders formation.

A break up through the $1.4017 swing-high brings an end to this current bearish picture, with further downside looking likely until then.

USD/JPY continues to outperform

USD/JPY has been on an impressive rise over the course of the past fortnight, with the pair rising into an eight-month high on Friday.

That ongoing uptrend continues to remain the dominant driver of price action, with a break below the ¥108.09 swing-low required to bring about speculation of a short-term pullback. Until then, further strength looks likely to play out as we move forward.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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