Currency Market Outlook - April 2020
Our April report outlines the key events and drivers that our analyst team expect to impact FX currency markets in the weeks ahead.
Written by George Vessey, UK Currency Strategist
USD: Bold, market-friendly measures by the Fed and Congress may be needed to help blunt the dollar’s rise.
CAD: The slowdown in the Canadian economy looks set to continue apace over coming quarters.
GBP: According to Oxford Economics, UK GDP is forecast to fall by 1.4% this year but bounce back 3.7% in 2021.
EUR: The euro’s fate will be sensitive to the pandemic’s development across the world. A rebalancing of concerns in the USA and Asia could offer some fresh air to the currency and help erase recent losses (likely cap around $1.14-1,15).
JPY: Increased concerns about a downturn in the US could rebalance long positions on USD to the benefit of the yen. The EUR/JPY rate is sensitive to coronavirus developments in Europe.
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