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GBP/USD, EUR/USD and USD/JPY affected by dollar strength

Despite some mixed CPI figures, the US dollar has strengthened a touch, resulting in mixed trading for EUR/USD and GBP/USD, while USD/JPY continues to bottom out.

EUR/USD stalled at weekly highs

EUR/USD suffered a sharp reversal yesterday, as $1.134 once again held back upward progress.

However, the drop to $1.128 has created a higher low, and small buying has been seen overnight. A close above $1.134 opens the way to $1.142 and $1.145.

GBP/USD stuck below $1.275

GBP/USD needs to break the highs of the week, with $1.275 acting as resistance. However, dips towards $1.265 are finding buyers.

If this holds, a push back to $1.275 may result. A failure to hold $1.2635 brings a more bearish view into play.

USD/JPY bounces from support

USD/JPY has held above ¥108.20 for a second day, and further gains would target ¥108.60 and ¥108.80.

If it can clear these, then a new higher high is created on the intraday chart and will target ¥109.00, trendline resistance from the April high. A move back below ¥108.00 is needed to revive the bearish view.

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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