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EUR/USD edges back but GBP/USD and USD/JPY push higher

The euro has edged back against the dollar in early trading, while cable has shown no signs of slowing down despite the Bank of England's mixed outlook for the UK economy.

EUR/USD retreats from $1.19

EUR/USD is edging back from the $1.19 level for the second time in a week, although the general move higher and the ongoing sequence of higher lows both remain in place.

A higher low above $1.176 would likely be seen as a possible buying opportunity, while a rally through $1.19 clears the way to fresh upside.

GBP/USD rallies in wake of central bank outlook

While the Bank of England (BoE) was a touch more cautious on the post-virus recovery, GBP/USD has still been able to make more progress to the upside, moving back to last Friday’s high at $1.316.

Despite expectations to the contrary the trend remains up, and with such firm buying at $1.30 earlier in the week it looks like there is plenty of bullish momentum.

USD/JPY poised to break higher

A possible bullish wedge is in play for the USD/JPY pair, which has formed over the past few days.

A rally through ¥105.70 would mark a breakout to the upside, and signal a resumption of the move higher. The bullish view remains in place unless the price breaks below ¥105.00.

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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