EUR/USD and GBP/USD fall as USD/JPY scales new peak
Revived expectations of Fed tightening have driven the dollar higher, hitting EUR/USD and GBP/USD and lifting USD/JPY.
EUR/USD continues to fall
There is still no sign of a real rebound for EUR/USD, as sellers continue to pile in. Slight rebounds intraday merely provide selling opportunities, with no real change to the overall picture.
The latest swing-high of $1.1374 continues to provide the ‘line in the sand’; a firm bounce has to clear this to provide any change to the bearish narrative.
GBP/USD pushes to new low
Having hit a new lower low yesterday the way seems clear for the GBP/USD price to renew its move to the downside.
As with EUR/USD, rebounds merely set up fresh opportunities for sellers to add to positions, and unless the price can move back above $1.3515 this bearish view remains firmly in place.
USD/JPY hits new highs
Resurgent USD strength has pushed USD/JPY to a new high, and it looks likely that further gains are ahead, as the broader consolidation gives way to revived bullish momentum.
A drop back below ¥114.20 would be needed to negate this view.
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