May 07, 2020 | Monthly Currency Outlook

Currency Market Outlook - May 2020

Our May 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: Markets are braced for America’s April jobs report on May 8 which could see unemployment test fresh record highs above 10%.
CAD:  As a leading energy exporter, Canada’s dollar often trades in near lockstep with oil markets.
GBP: GBP/USD may continue to fluctuate between $1.20 and $1.25 for the next month or so and GBP/EUR may stabilise between €1.12 and €1.14.
EUR:  If global concerns about Covid-19 start to ease the euro could rally of Euro above $1.10, however any upsides would be capped Europe’s cloudy outlook.
JPY: An acceleration of the Covid-19 outbreak in Japan could have downside side effects on the currency (especially against USD).

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*Source: UK FX Barometer 2019 – Western Union Business Solutions