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, GBP/USD and USD/JPY in retreat as risk appetite falters

Pre-ECB nerves have hit risk assets across the board, leading to losses for EUR/USD, GBP/USD and USD/JPY.

EUR/USD drops back from $1.19

EUR/USD has firmly rolled over, retreating from $1.19.

This second failure to push on above $1.19 looks to have handed the initiative to the sellers, who will be looking for a resumption of the downward move towards $1.17. As yet the bulls do not appear to have the strength to halt further declines, but a recovery above $1.185 might stem further losses.

GBP/USD declines further

The pound is in retreat as well with GBP/USD, after it fell back from the highs for the month.

A bounce yesterday is being unwound, which puts the pair back on course to $1.36. Tuesday’s break of trendline support was the key development that has handed the initiative back to the sellers.

USD/JPY falters after recent gains

Hopes of more upside with USD/JPY have been capped for now with the move above ¥110.35 that was then knocked back yesterday.

The dollar has fallen back since then, although it remains in the upward channel of the past month, which may yet result in another move higher.

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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