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 and GBP/USD fall as USD/JPY rally stalls

A turn to a more risk-averse atmosphere has hit EUR/USD and GBP/USD, while USD/JPY’s bounce has stalled for now.

EUR/USD in retreat again

The EUR/USD weakness over the past two days shows no sign of stopping yet, with the continuing losses wiping out the bounce from late last week.

Further declines target $1.118, the low from last Friday, and with a descending channel firmly in place more downside seems likely. Alternatively, if we can see a reversal back above $1.126 then we have a higher low and the makings of a potential move higher, targeting $1.135 and then on above $1.14.

GBP/USD fights to hold $1.24

A fresh lower high was seen over the past two days as GBP/USD failed to hold above $1.25.

The downward move appears to have stalled at $1.24 for the time being, but a bounce needs to clear $1.255 to provide a more bullish view. On the other hand, below $1.24 the price heads back to last Thursday’s low at $1.235 and then below this the bearish view is further reinforced.

USD/JPY rally hits the buffers

The USD/JPY’s dramatic decline of Tuesday was cancelled out by steady gains made over the past 36 hours.

While the price has returned to ¥107.00, given the market-wide turn in risk appetite it may be hard for the pair to sustain these levels. A drop below ¥106.50 would revive the bearish view, while continued gains target ¥107.50 and then on to ¥108.30.

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

liveprices.javascriptrequired

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.