EUR/USD finally bounces as GBP/USD is lifted by rate hike hopes
The euro has found the strength to rally against the dollar, and sterling continues to gain on expectations of a potential BoE rate hike. Meanwhile USD/JPY has drifted lower after.
EUR/USD finally stages a rebound
A more substantial bounce appears to be in play here with EUR/USD, as the price leaps back above $1.16.
A snap-back rally to at least the 50-day simple moving average (SMA) at $1.1715 seems likely, a counter to the losses of September and October, but any bounce that falters below $1.19 will create a lower high and could simply embolden the sellers once more.
GBP/USD still climbing
Similarly here with GBP/USD, the buyers have it all their own way for now but will need to clear $1.39 to avoid a similar lower high.
It has been a strong bounce, fuelled now by expectations of a Bank of England (BoE) rate hike, but sellers will be looking for a price reversal that breaks the recent run of higher lows and renews the downtrend of the last few months.
USD/JPY edges lower
A drift back from Monday’s high is still in progress,with USD/JPY although it puts only a small dent in the gains made.
Overall the buyers still hold sway, and it will take a dip back below ¥113.00 to suggest something bigger is at hand.
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
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
