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.

EUR/GBP and USD/JPY both renew their declines

The pound continues its ascendancy over the euro, while the dollar is ending 2020 on a weak note against the Japanese yen.

EUR/GBP heads down once more

The last day before the end of the transition period finds EUR/GBP declining, continuing the bearish trend of the past two weeks. After finding resistance around £0.915 the price has fallen back towards the 200-day simple moving average (SMA) £0.8992.

As has been the case throughout the month, the pair then bounce from this indicator, drawing a line in the sand for the bears. A move below £0.895 would be needed to clear the area of support seen over the last four weeks. For the moment, trendline resistance from the mid-December high continues to gap any moves to the upside.

USD/JPY ends 2020 with more losses

The downtrend of USD/JPY shows no sign of ending. After a brief bounce over the past ten days the price has now headed back to the ¥103.00 lows of the past two months.

Below ¥102.87 the price will create a new lower low, confirming the downtrend. As we have seen over the past few weeks, even modest bounces tend to hit a wall of selling, with little sign of any real upside movement.

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


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.