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.

Stronger dollar lifts USD/JPY, but hits EUR/USD and GBP/USD

The euro is in full retreat against the US dollar, which itself is rallying against the yen as risk appetite revives.

EUR/USD in full retreat

Selling the rallies has been the way to go for EUR/USD, with bounces over the past few days meeting fresh selling pressure. The brief move higher overnight, back above $1.105, seems to have run its course, and hourly stochastics and moving average convergence/divergence (MACD) now seem poised to roll over.

A move back above $1.11 is needed to revive a more bullish thesis, while a resumption of the longer-term downtrend targets the late-September low at $1.09.

GBP/USD attempts to hold above $1.28

The decline over the past two weeks has been less dramatic for GBP/USD, and with the price once again attempting to hold above $1.28 we may yet see a recovery.

However, selling intraday rallies has been the dominant theme since the beginning of the month – Thursday’s bounce towards $1.287 found sellers, so this needs to change, with the price moving back above the 50-hour simple moving average (SMA) of $1.2844 and holding above it, if bulls are to regain the upper hand.

USD/JPY stages push above ¥109

Is USD/JPY finally breaking out above ¥109.00? It looks that way, as the price bounced from ¥108.60 yesterday and continued its gains this morning.

Further gains head towards ¥109.55, with intraday dips still being possible buying opportunities. Even a dip towards ¥108.50 is still likely to encounter trendline support from the August low.

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 with insights from Real Vision

Discover a world of cutting-edge financial media from Real Vision, with a year's free subscription when you open and fund an IG account.*

  • Exclusive insights from top financial minds, including Mark Cuban, Kyle Bass and Stanley Druckenmiller
  • Thousands of videos, covering a massive range of financial topics, with new content released daily
  • Easy access to Real Vision in the IG web platform

*Minimum fund of $500 to qualify for Real Vision TV access; minimum fund of $5000 for Real Vision TV, Macro Insider and Think Tank.

Live prices on the most popular forex markets


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.