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.

FX levels to watch: EUR/USD, GBP/USD and USD/JPY

Sterling is still enjoying a run of gains, but USD/JPY has been hurt by a softer outlook for Fed policy and Trump’s tweets about trade negotiations.

EUR/USD edging higher

The EUR/USD pair rallied off last week’s lows and is now pushing back towards trendline resistance from the March highs, which would suggest resistance around $1.124.

A push above $1.125 would signal a break higher, targeting $1.134 and then $1.145. A move back below $1.12 resumes the downward trend, targeting $1.112 in the first instance.

GBP/USD still in bullish form

The breakout for GBP/USD over the past three weeks remains intact.

Higher lows have been seen since the end of April, with dips to $1.30 and then $1.308 finding buyers. As a result, we have seen an uptrend form. A fresh higher high requires a move above $1.318. The bullish view remains in place until the price falls back below $1.30.

USD/JPY slumps to six-week low

Dovish Federal Reserve (Fed) commentary and the US President Donald Trump trade tweets piled the pressure on USD/JPY over the past few days, with the price dropping to a six week low.

A rebound followed, but the price failed to push on above ¥111.00. Further gains would need to clear this area and then move on to recover ¥111.60. Additional declines target ¥110.40 and then down to ¥109.90.

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.