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 move up as USD/JPY holds firm

After some weakness yesterday EUR/USD and GBP/USD are on the up, as USD/JPY continues to consolidate after recent volatility.

EUR/USD shrugs off recent bearishness

EUR/USD recovered from what seemed like a possible turn lower yesterday, clinging on around $1.217.

It has now begun to push back towards $1.22, recovering from its latest dip. A close above $1.22 and a move towards $1.225 puts the buyers firmly back in charge. Sellers will want to see a reversal below $1.216 that then moves on below $1.21.

GBP/USD edging higher again

With GBP/USD the recent weakness appears to be resolving into a move higher, as the pair heads back to $1.22.

This cancels out any bearish view for the time being and points towards a renewed move to $1.424, assuming the price can clear the area just below $1.42 that has marked the limit of gains so far this month.

USD/JPY holds its ground for now

While the USD/JPY price bounced from the lows of Monday, it has struggled around ¥109.50.

However, given that the sell-off from last week’s highs has been stemmed for now, then there may yet be enough bullish momentum to push the price back above ¥109.60 and onwards towards ¥110.00 A drop below ¥109.20 negates 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

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.