Sep 01, 2020 | Monthly Currency Outlook

Currency Market Outlook - September 2020

Our September 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 dollar could form a meaningful bottom if Europe appears at growing risk of a second wave of COVID-19 infections.
CAD: Considerable cooling is forecast for Canadian consumer spending.
GBP: GBP/USD may extend its upward trajectory if dollar weakness persists, with traders eyeing the $1.33 handle as a potential springboard to $1.35.
EUR: A tightening of restrictions in Europe in case of a second wave could put a clear drag on the recovery momentum. In this scenario, a V-shaped rebound scenario may not hold up.
JPY: In the absence of major hurdles to the recovery path of the economy or any more progress in the development of a vaccine, investors will likely steer clear of the low yielding yen.

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