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EUR/USD and GBP/USD move higher but USD/JPY comes under pressure

FX markets have been calm in early trading, but sterling has managed to make a small dent in recent losses against the dollar.

EUR/USD edges towards $1.19

The steady recovery from the lows of last week continues for EUR/USD, but it is beginning to show signs of slowing down.

Short-term weakness may encounter support around $1.17, but unless this level is broken any bigger drawdown is unlikely. Meanwhile, further gains continue to target $1.20.

GBP/USD rises off support

The precipitate downward move appears to have halted for now for GBP/USD. A bounce from $1.277 does not yet change the overall negative view; this would require a move above $1.29, breaking trendline resistance from the September peak.

This would then bring $1.303 and $1.32 into view. A drop below $1.277 signals a resumption of the downward move.

USD/JPY steady after decline

A drop early on in Tuesday’s session saw the USD/JPY pair take out last week’s low, but for now it has found support at ¥105.50.

Below this ¥105.24 and then ¥104.80 come into view. The broader downward move is still in place, with a rally above ¥106.50 needed to provide evidence of any upward momentum.

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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