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EUR/USD, GBP/USD and USD/JPY seeing brief dollar strength

EUR/USD, GBP/USD and USD/JPY reverse recent trend, with risk-off moves starting to unwind.

EUR/USD eases back after yesterday’s rebound

EUR/USD began regaining ground yesterday, with the wider bullish trend in place since November expected to continue until we are shown otherwise.

For the time being, that means we are looking for a break back into the 1.1238 region. With that in mind, further upside looks likely unless we see a break below the 1.1125 support level.

GBP/USD pushes higher once again

GBP/USD looks set for another bullish session, with the pair building on yesterday's services PMI-led rebound.

That reading points towards a likely post-election economic recovery which should be pound positive. With that in mind, further upside looks likely from here, with a break through 1.3284 providing us with a strong signal that we are heading back towards the 1.3515 peak.

USD/JPY rise unlikely to last

USD/JPY has broken below a key area of support amid the recent risk-off move, with the uptrend seen through the second half of 2019 now broken.

With the price having dropped below the 108.42 and 108.25 swing lows, there is a strong chance that we will see another turn lower before long as we reverse more of that wider uptrend.

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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