Jun 01, 2020 | Monthly Currency Outlook

Currency Market Outlook - June 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:  The trade-weighted U.S. dollar index has appreciated about 3% year to date.
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:  Investors may lose more faith in European assets if EU members are unable to reach agreement on a bail-out plan, the ECB shows minimal economic support, or Brexit talks stall.
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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