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 heads down while GBP/USD begins to recover and USD/JPY rebounds

It is a day of mixed fortunes across asset markets, although the dollar is stronger in the wake of a recovery in US retail sales.

EUR/USD heads to the downside

After Thursday’s slump here with EUR/USD, the sellers are firmly in control again, and a move back towards $1.166 looks to be on the cards.

The drop below the 50-day simple moving average (SMA) $1.1797 has handed the initiative to the sellers, and now we look for additional losses. A move above $1.18 would be needed to provide more hints of renewed upside for EUR/USD.

GBP/USD holds trendline

While GBP/USD fell back too yesterday following US retail sales, it was able to regain some ground in the latter part of the session.

Buyers will be pleased to see the price has held rising trendline support from the August low, providing hope that a new bounce towards $1.385 can begin.

USD/JPY rebounds after retail sales

Markets can be frustrating places, and sellers will have to relearn this after seeing USD/JPY bounce yesterday following the previous two days of losses that seemed to hand the initiative to the sellers.

The price is edging back above trendline support from the early August low, and with stochastics turning higher once again a new move towards ¥110.35 may develop.

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.