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 remain under pressure while USD/JPY trades in near 20-year highs

EUR/USD and EUR/GBP flirt with last week’s lows as worries about the outcome of the French presidential election weigh on the Euro while USD/JPY is trading at levels last seen in May 2002.

​EUR/USD drops towards the $1.0727 April 2020 low on firmer Dollar

EUR/USD revisits last week’s low at $1.0758, having slid through its $1.0806 early March low, with the April 2020 trough at $1.0727 being next in line.

The US Dollar continues to appreciate amid escalating worries of further lockdowns in China, Russia apparently beginning the second phase of its advance in the Donbas region of Ukraine and mounting signs of more interest rate hikes being in the pipeline globally. This contrasts with ongoing Euro weakness due to the war in Ukraine and worries about the outcome of this weekend’s second round of France’s presidential election in which the incumbent Emmanuel Macron is battling it out with his right-wing rival Marine Le Pen.

The trend in EUR/USD will remain immediately bearish while the cross stays below the late March low and last week’s high at $1.0933 to $1.0945 with the March 2020 low at $1.0638 representing a downside target for the weeks ahead. Major resistance remains to be seen between the January low and March high at $1.1122 to $1.1185. While the cross stays below this area, the long-term downtrend remains intact.

EUR/GBP’s bounce off last week’s low at £0.8250 looks vulnerable

EUR/GBP bounce off Thursday’s £0.825 low has been very tepid with the cross so far not even reaching the 23 March low at £0.8296 as the Euro remains under pressure amid heightened tensions in Eastern Ukraine and worries surrounding the second round of the French presidential elections.

Further minor resistance is found at the £0.8308 8 April low and at the £0.8322 late March low.

A fall through last week’s low at £0.825 would put the March trough at ££0.8203 on the map.

USD/JPY trades in near 20-year highs

USD/JPY is trading at levels last seen in May 2002, having practically closed higher every single day since the beginning of April, probably its longest losing streak in at least half a century , as traders continue to focus on the widening gap between US and Japanese interest rates.

Comments by the Federal Reserve Bank (Fed) of St. Louis President James Bullard which mentioned the possibility of 75 basis point (bp) rate hikes being seen in the US led to another surge higher in the USD/JPY cross with it gunning for the ¥135.18 January 2002 peak.

Good support can now be seen between the June 2015 and March 2022 highs at ¥125.85 to ¥125.10 which is unlikely to be revisited anytime soon, though, if the Bank of Japan’s (BOJ) keeps sticking to its dovish stance despite inflation hitting at 3-year highs.

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.