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Feb 03, 2020 | Monthly Currency Outlook

Currency Market Outlook - February 2020

Our February 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: The Fed is forecast to spend an extended period – possibly all year – on the sidelines.
CAD: The critical data point to watch is Canada’s Q4 GDP on February 28.
GBP: Will the boost in business optimism trigger an increase in investment and production? Signs of an economic recovery will likely see GBP/USD and GBP/EUR scale back towards highs of last year.
EUR:  Failing a sudden shift of market sentiment, the $1.10-$1.12 price range could remain standard for EUR/USD volatility. Risks remain tilted to the downside, so keep a close eye on $1.10 barrier.
JPY: We see more upside than downside risks for the yen in such a gloomy environment. EUR/JPY and GBP/JPY rates look the most at risk as Brexit and trade stories involving EU are back on the map.

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