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 tiptoes higher but GBP/USD and USD/JPY fall again

The euro is rising from overnight lows, but both GBP/USD and USD/JPY are under pressure in trading this morning.

EUR/USD recovers for now

The EUR/USD pair has rebounded over the past 24 hours, but the near-term direction depends on what the European Central Bank (ECB) head Mario Draghi has to say.

The recovery above the 50-day simple moving average (SMA) of $1.122 is a positive sign, with further gains targeting $1.13 and then $1.135. If this rally from $1.12 is a higher low then a more bullish view begins to emerge. Failure to push above yesterday’s high at $1.125 would suggest a move back below $1.12 and back down to $1.112.

GBP/USD hits new low for the year

GBP/USD slumped through $1.26 yesterday, as markets continue to worry about the prospect of a Boris Johnson premiership.

The next area of support will be the lows of December around $1.246. Yesterday’s drop from $1.26 sends a signal that the bears are firmly in control, and a recovery above here is needed to suggest a tentative change towards a more bullish view.

USD/JPY bears take back control

It seems hopes of continued gains have been dashed it seems for USD/JPY, as the price slumps back towards ¥108.20, the lows of the past week.

With the price now heavily oversold intraday, a short-term rebound is possible, but it requires a move back above ¥108.70 to suggest that the buyers are still in charge. Below ¥107.80 the price heads towards ¥106.80 and the 3 January low.

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.