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 edges up, while GBP/USD drops back and USD/JPY drifts sideways

The pound is in retreat ahead of BoE meeting, while against the yen the dollar is unable to make headway.

EUR/USD claws back some losses

After Friday’s losses, EUR/USD's small recovery has taken place, but it is far from clear that the buyers are regaining the upper hand.

The failure to push on above the 50-day simple moving average (SMA) last week would suggest the sellers are in control, but at present the view is more neutral. A recovery above $1.17 would put the price back on a more short-term upward footing, while a drop back below $1.1534 would suggest a fresh move to the downside is underway.

GBP/USD heads lower

The GBP/USD price has rolled over in definitive fashion, and in a way that suggests we could see October’s gains further eroded as the downtrend reasserts itself.

The fall back below $1.37 and the lower highs in late October point towards a bearish view, and the price action over the past three days has certainly favoured the sellers.

USD/JPY remains in consolidation mode

USD/JPY has gone from sharp rally to gentle consolidation, with gains stalling at ¥114.50.

We look for a continuation of this ranging move for the time being before a resumption of the longer-term move higher.

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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