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Aug 03, 2020 | Monthly Currency Outlook

Currency Market Outlook - August 2020

Our June 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 

Highlights include:

USD: Look for the dollar to serve as a barometer of sentiment as businesses reopen and consumers venture out to spend.
CAD: Data will be parsed for hints of economic stabilization north of the border.
GBP: GBP/USD may fall to 35-year lows around $1.14 if no-trade deal Brexit fears ramp up in June. In this scenario, GBP/EUR could fall well below €1.10.
EUR: EUR remains unattractive in a risk-off market environment. Renewed confidence in political institutions (ECB, EU) and the region’s economic outlook would help boost the euro.
JPY: The current high valuation of stocks despite poor economic fundamentals suggests a likely correction of the market sentiment downgrade, and then a higher demand for yen as a result. 

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