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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.

EUR/USD, GBP/USD and USD/JPY make headway

The Fed’s commitment to tighter policy next year has led to a bout of risk-on moves in markets, lifting key currency pairs.

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EUR/USD stabilises as markets await ECB

EUR/USD managed to rally following the Federal Reserve (Fed) decision, as the price bounced from $1.125, but with the European Central Bank (ECB) on today’s calendar the risky period is not over yet.

However, the price is testing trendline resistance from the November high, and could be on the cusp of a break higher, challenging recent highs at $1.1325 and $1.135.

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

GBP/USD edges up ahead of BoE meeting

Today’s Bank of England (BoE) meeting shouldn’t deliver too much in the way of fireworks with GBP/USD, and with the price having stabilised over recent sessions a move back towards $1.3275 and potentially higher could be in the offing.

This may mark a short-term rebound within the broader downtrend of the second half of the year.

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

USD/JPY moves higher

The post-Fed price action suggests buyers are in the ascendant again with USD/JPY, after pushing the price back above ¥113.85, putting it back on course for ¥115.00 and ¥115.50.

Sellers would need to reverse gains and pish the price back below ¥113.20 to provide a more bearish view.

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.

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