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. 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.

Rising dollar boosts USD/JPY but sends EUR/USD and GBP/USD sharply lower

The greenback is enjoying some notable strength, which is helping the currency to an 18-month high against the yen, while causing sharp losses for the euro and sterling against the US currency.

EUR/USD hit hard on rising dollar

The sellers are firmly in control here as the EUR/USD price slumps to its lowest level in over a year.

Having broken below a series of support levels the next target may well be $1.144 and then $1.139, last seen in June and July 2020. So far there is no sign of any recovery, which would require at least a move back above $1.17.

GBP/USD slumps as greenback strengthens

Dollar strength has made itself felt here too, pushing GBP/USD to its lowest level for the year.

A wide gap to the next potential support level at $1.32 now looms, with short-term rallies likely to provide further selling opportunities so long as the price remains below $1.36.

USD/JPY rallies to fresh highs

The dollar continues to climb, boosting USD/JPY to its highest level since February 2020.

How far this move goes before it weakens remains to be seen, but elevated stochastics point towards strong bullish momentum. Some retracement back in the direction of ¥111.50 might provide a further buying opportunity.

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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