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 recover as USD/JPY falters

Some pre-election weakness has hit the dollar, allowing the euro and sterling to recover some lost ground, while USD/JPY’s bounce from last week’s lows may have run its course.

Transcript

EUR/USD rallies off support

After holding below the 100-day simple moving average (SMA) yesterday the EUR/USD pair is moving up again this morning, with a renewed push higher targeting $1.188, the high from the latter part of October.

It has managed to rally from around $1.162, the same area that held in late September, bolstering the bullish view for the time being. A reversal below $1.16 would negate this view.

GBP/USD reverses course

GBP/USD also moved below its 100-day SMA ($1.2883) yesterday, but buyers arrived to prevent a close below this indicator, and we have seen some further bullish momentum this morning that increases the chance of a renewed move higher in the uptrend from the September lows.

This would bring $1.315 into view. A move below $1.286, support over the past three weeks, is needed to hand the initiative to the sellers.

USD/JPY weakens after three-day gain

Here the price of USD/JPY rallied off the lows of last week, but already what limited bullish momentum there was is slipping away.

A rally towards ¥105.00 yesterday found sellers ready to push the price lower, with some follow-through this morning. With momentum still weak a reversal below ¥104.50 could mark another push lower that takes the price below ¥104.00, a level of support since the end of July.

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.

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.