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. 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.

EUR/USD, EUR/GBP and GBP/USD look bid post Fed and ahead of BoE rate decisions

EUR/USD and GBP/USD continue to rise as US dollar weakens post Fed’s quarter point rate high, while EUR/GBP stays side-lined ahead of BoE rate announcement.

EUR/USD continues its gradual advance as Fed starts new rate hike cycle for first time since 2018

EUR/USD continues its gradual advance towards the January low and last week’s high at $1.1121 to $1.1122 in the wake of yesterday’s widely anticipated US Federal Reserve (Fed), funds rate hike by a quarter point to 0.25% to 0.50%, and it is announcing that it is ready to raise rates six more times this year to contain inflation.

Further up, meanders the 55-day simple moving average (SMA) at $1.1264. Slips should find support around the minor psychological $1.10 mark with further support seen at last Monday’s $1.0901 low.

EUR/GBP consolidates ahead of BoE rate decision

EUR/GBP continues to range trade below this week’s high at £0.8456, whilst remaining above the 55-day SMA at £0.8361 ahead of today’s Bank of England (BoE) rate decision. The market has priced in a third rate hike in a row, taking the base rate to 0.75%.

While the 11 March £0.8361 low underpins, the February peak at £0.8478 remains in focus, together with the 200-day SMA at £0.8479.

GBP/USD remains bid while looking forward to BoE rate decision

GBP/USD has swiftly recovered from its one year 3 months low at $1.3001 and left its one-month downtrend channel amid ongoing peace talks between Russia and Ukraine.

A band or resistance between the late November, December lows and last Thursday’s high at $1.3163 to $1.3194 is being probed ahead of the BoE rate announcement at mid-day. If overcome, minor resistance at the 24 February $1.3273 low should be targeted. In case of a drop being seen, the 8 March low at $130.83 should act as support today.

Only an unexpected fall through this week’s low at $1.3001 would likely lead to the $128.55 to $1.2813 support zone being targeted. It contains the June 2020 high and the November 2020 low.

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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