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 and come with a high risk of losing money rapidly due to leverage.

Risk appetite revival lifts EUR/USD, GBP/USD and USD/JPY

Risk appetite has revived, leading to rallies for key FX pairs as the recent jitters about the global monetary policy outlook begin to fade.

EUR/USD rebounds above 50-day SMA

EUR/USD is headed higher once again, having cleared the 50-day simple moving average (SMA) at $1.2156 and now looks set to target the January high at $1.235.

The bullish view has recovered after the uncertainty that persisted from mid-January until this week, but a higher low has been formed and the price is on an upward path once again. Sellers will need to see a drop back below $1.21 and then on to $1.194.

GBP/USD rally keeps on going

There seems to be no stopping the GBP/USD pair, but the yawning gap between the price and the 50-day SMA ($1.37) may become an issue at some point.

A reversal below $1.40 would provide some evidence of a near-term pullback, but for now that has yet to materialise.

USD/JPY surges back to recent highs

The recovery here is complete, and now USD/JPY can look towards a continued bounce that takes it through last week’s highs and towards the August highs at ¥107.

The bullish view is firmly back in place, and sellers have now been shut out once again, having failed to hold the price below ¥105.

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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