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EUR/USD weaker, GBP/USD and USD/JPY stronger ahead of US jobs report

The euro is struggling to hold gains following the ECB meeting, but USD/JPY is rising ahead of the monthly non-farm payrolls.

EUR/USD falters after ECB meeting

The price of EUR/USD rallied after yesterday’s European Central Bank (ECB) meeting did not give an explicitly dovish view. Though with the ECB president still leaving open the door to more quantitative easing (QE), the pair was unable to hold on to all its gains.

Fresh gains will target $1.1326, with a daily close above this level needed to break resistance. A turn lower below $1.12 would suggest a decline to $1.112 is in the offing.

GBP/USD still clawing its way higher

Twice this week rallies to the $1.274 area have faltered for GBP/USD, as also happened on 27 May.

A drop back to $1.27 overnight found support, so we look for a push towards $1.274 again, with a break above here needed to establish a new higher high. A move below $1.264 would begin to signal that the bounce is over.

USD/JPY tiptoes higher

Having bounced from ¥107.70, the price of USD/JPY has made modest gains, although it has not managed to put much of a dent in the sharp drop at the end of May.

The short-term bullish view persists so long as the price remains above ¥107.00, but until the price recovers ¥109.50 then the outlook is mixed at best.

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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