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/USD, GBP/USD and USD/JPY see haven demand

A mixed bag for EUR/USD, GBP/USD, and USD/JPY, with haven demand playing out after Trump contracts coronavirus.

EUR/USD rolling over after recent retracement

EUR/USD has started to turn lower, with the wider risk-off sentiment driving upside for the haven dollar. Given the breakdown seen last week, this recent rise is likely to represent a retracement before we turn lower once again.

The rally took us back towards the 61.8% Fibonacci retracement level ($1.1772), and we are starting to decline from there. A break through the $1.1684 swing low would establish a more reliable sell signal here, highlighting the likely end of this recent upward retracement phase. Until then, there is still a chance of a deeper move towards the 76.4% Fibonacci level. However, in either scenario, a bearish outlook is in play unless we see the pair rise through the $1.1871 swing high.

GBP/USD rallies as hopes of Brexit deal are lifted

GBP/USD has rallied after the news that UK Prime Minister Boris Johnson and the EU’s President Ursula Gertrud Von Der Leyen are set to hold high level talks on Saturday in a bid to break the deadlock.

From a charting perspective, the downtrend seen over the past month remains in play until we see a break through the $1.3007 level. As such, the bias will be determined by whether we break $1.3007 (bullish), or $1.2805 (bearish).

USD/JPY breaks lower as yen dominates haven demand

USD/JPY has moved sharply lower, with the wider bearish trend seemingly coming back into play once more. While the pair had been gaining ground over the course of the past fortnight, the long-term downtrend seen throughout 2020 always looked likely to kick in before long.

On this occasion, we have seen the pair reverse from the 61.8% Fibonacci retracement level following a move into haven assets this morning. While the pair is attempting to regain some of that lost ground, it is likely we move lower from here, with a bearish outlook in place until we see a rise through the ¥105.73 swing high.

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.