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 strength remains key consideration for EUR/USD, GBP/USD, and USD/JPY

Dollar strength a key theme for EUR/USD, GBP/USD and USD/JPY, with US economic outperformance stifle bearish sentiment for the greenback.

EUR/USD falling back after rally into prior support

EUR/USD has turned lower from the $1.2109 resistance level yesterday, with the pair looking set to follow up on the bearish sentiment set when the pair broke below $1.2023 on Tuesday. That move points towards the potential for another bearish phase to come into play for the pair.

However, it is worthwhile noting the prior break up through $1.219 brings both bearish and bullish signals. As such, while we are seeing the pair move lower this morning, the recent consolidation around $1.2058-$1.219 means there is a good chance we are preparing for a move higher to continue that indecisive theme.

GBP/USD attempts to rebuild after latest pullback

GBP/USD has been consolidating since the recent sharp pullback which took us within touching distance of the key $1.383 support level. A break below that point would bring a wider bearish picture into play, negating the intraday uptrend that has been in play over the past month.

Nevertheless, with price having moved up through the $1.3999 resistance level yesterday, there is a good chance this current move lower is a case of the pair gathering momentum for the next push higher. As such, a bullish outlook holds until we see price break the $1.383 support level.

USD/JPY drives higher as PMI surveys highlight US strength

USD/JPY continues to trend higher, with yesterday’s purchasing managers index (PMI) surveys highlighting the ongoing economic outperformance of the US.

That uptrend looks likely to persist as we move forward, with a break back down below the ¥106.67 level required to signal a wider retracement phase coming into play. ​

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.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only

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 forex provider.

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