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 on the back foot as USD/JPY awaits directional breakout

EUR/USD and GBP/USD head lower after BoE rate decision, while USD/JPY continues to consolidate below key resistance.

EUR/USD stabilizes after Thursday decline

EUR/USD has been on the back foot over the past 24-hours, with the pair heading back into a three-week low yesterday. We are seeing some stabilization this morning, but risks remain for another move lower given the ongoing trend of lower highs.

With that in mind, a bearish outlook holds unless we see the price break up through the $1.1616 swing high. To the downside, a break below $1.1524 would bring a fresh sell signal for the pair.

GBP/USD selloff continues after BoE rate hold

GBP/USD has been hit hard over the past 24-hours, with the Bank of England (BoE) decision to delay their first-rate hike sending the pound spiraling lower. That sell-off is part of a wider bearish trend that highlights the potential for further downside over the near term.

The break below $1.3471 this morning brings expectations of another leg lower, with $1.3411 representing the next notable support level. A move up through $1.3516 would raise the likeliness of a short-term rebound.

USD/JPY consolidates below long-term resistance level

USD/JPY has continued to consolidate off the back of a rally that took us into the notable long-term resistance level of ¥114.73.

For now, we are seeing continued higher lower, which points towards a potential short-term buying opportunity as the price attempts to push back towards ¥114.27 once again. However, the wider picture will only come into play once we see a price break through either ¥113.00 (bearish), or ¥114.73 (bullish).​

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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