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EUR/USD weaker, as GBP/USD and USD/JPY hold steady

Some of the dollar strength of recent days has abated, stalling the rally in USD/JPY and resulting in a slowdown in EUR/USD’s pullback.

EUR/USD pullback slows

The pace of EUR/USD decline over the past few sessions has slowed, and while the sellers continue to press their advantage, a bigger move below $1.20 still eludes them.

As a result, the bearish view occasioned by the retreat from $1.215 is beginning to lose its strength. A recovery back above $1.205 would help to suggest that a new leg higher has begun.

GBP/USD still struggling below $1.40

GBP/USD remains in the sideways pattern of the past six weeks, although the recovery seen this week has helped to boost hopes of a breakout to the upside above $1.40.

Today’s Bank of England (BoE) meeting is unlikely to provide much in the way of volatility, with GBP/USD’s fate likely resting in the hands of the Federal Reserve (Fed) and further US data this week.

USD/JPY rally stalls

The USD/JPY bounce from the lows at the end of April has slowed, unable to push on above ¥109.40.

Sellers will be watching for a drop back below ¥108.80 that could spark a renewed fall, while buyers will want to see ¥109.50 recovered to open the path to the highs from the end of March above ¥110.50.

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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