Oct 01, 2020 | Monthly Currency Outlook

Currency Market Outlook - October 2020

Our October 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: U.S. consumer confidence hit a 6-year low in August, adding pressure on Congress to deliver more fiscal support.
CAD: The Bank of Canada’s late October policy statement could help guide expectations for USD/CAD’s performance into year-end.
GBP: Given GBP traders are badly positioned for a hard Brexit, sterling’s recent decline could run even deeper and GBP/ USD could challenge the $1.24 area whilst GBP/EUR may slip towards 12-year lows around €1.05.
EUR: Given the euro’s large rally this year, its downside potential is significant against some currencies such the US dollar, the UK pound or the Japanese yen.
JPY: The race for a vaccine, post-Brexit talks, and the US elections are other hot topics that could influence the volatility of the Japanese currency.


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