EUR/USD, GBP/USD and USD/JPY all go into retreat
FX markets have been hit by risk aversion, with EUR/USD under particular pressure following fresh weakness in eurozone PMIs.
EUR/USD hit by weaker PMIs
Purchasing managers index (PMI) figures from the eurozone have sent EUR/USD tumbling, with the rally towards $1.107 from mid-September looking like a lower high.
Weakness throughout the month so far found buyers around $1.093, so we may see some support around here, while further declines head towards $1.085. The bearish view remains in pace unless we see a move above $1.112.
GBP/USD creates lower high
After an impressive bounce over the past four weeks, GBP/USD may be headed lower.
Weakness last week found support around $1.24, so a move through this area is needed to confirm the bearish view, but with daily stochastics rolling over momentum appears to be shifting towards the bears. A move back above $1.25 is needed to reverse this impression.
USD/JPY rolls over
The dollar has slipped further this morning, continuing USD/JPY's broadly bearish theme of the past few days.
As with GBP/USD, daily stochastics have rolled over, and moving average convergence/divergence (MACD) may follow it, confirming the bearish view. Rallies towards ¥108.00 may provide intraday selling opportunities, but the bearish view remains in place unless the price close above ¥108.10.
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
See more forex live prices
Prices above are subject to our website terms and agreements. Prices are indicative only