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 and GBP/USD edge higher while USD/JPY holds near highs

A pause in downward moves for EUR/USD and GBP/USD is matched by a consolidation for USD/JPY following its huge rally.

EUR/USD ticks higher for a third day

EUR/USD continues to gain, recouping losses from the recent lower low. However, the downtrend is still firmly in place. So, while we might see a continued rebound towards $1.11 or even $1.12, the outlook still points towards additional losses.

In the short term, a reversal back below $1.09 would put the March low back in view.

GBP/USD struggles to move higher

After nearly hitting $1.30 the GBP/USD price has begun to recover, but only timidly.

The fresh lower low from this week puts new strength into the downtrend. A possible rebound could see the price head back towards $1.32, but even above here a lower low is still likely. Depending on how the Federal Reserve (Fed) and Bank of England (BoE) meetings go, sterling may find some room for upside.

USD/JPY holds above ¥108

The surge in USD/JPY has been one of the most remarkable moves of late, although it has been overlooked due to the rallies in oil prices.

As the preceding two pairs have hit lower lows, this has surged to a new higher high. ¥108.61 is the high from the beginning of 2017, and above here ¥124.45 and then ¥125.75 come into view over a medium-term view. A reversal towards ¥115.00 would leave the uptrend intact and establish a higher low.

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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