Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dollar strength pushes down EUR/USD and GBP/USD, with Bank of England meeting in focus

The Bank of England is expected to raise rates today, but both EUR/USD and GBP/USD are moving lower in morning trading, while USD/JPY continues to move sideways.

Video poster image

EUR/USD

The dollar has strengthened once again with EUR/USD, and this has put further downward pressure on the pair.

A move back to the October lows at $1.1524 now seems likely, with a firm bearish view still in place. Additional declines would target $1.1392, a key level back in 2020. A more bullish view requires a move back above late October’s high at $1.168.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD

Dollar strength is pushing GBP/USD lower, but there is the potential for a recovery should the Bank of England (BoE) prove to be more hawkish than expected.

Today could see heightened volatility around the interest rate decision and press conference, but with the rate increase so widely expected it could equally pass without much incident. The reversal from yesterday’s highs near $1.37 suggest a more bearish view prevails, with $1.355 and then $1.345 coming into view. Buyers will want to see a move back above $1.37 that then brings the late October highs around $1.384 into view.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY

Little change has been seen here, with USD/JPY continuing to move sideways as it has done for three weeks.

¥113.50 and ¥114.50 mark the lower and upper bounds of the trading range respectively.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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 provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.