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Monthly Currency Outlook | Reports

Monthly Currency Outlook - May 2021

Our May report outlines the key events and drivers that our analyst team expect to impact FX currency markets in the weeks ahead.

Monthly Currency Outlook May

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  Year-to-date performance: The dollar index has appreciated about 1%.
CAD:  Going up: The BOC upgraded its 2021 growth outlook to a scintillating 6.5% from an already bullish 4% in January.
GBP:  GBP/USD remains comfortably above its five-year average rate of $1.30 but could give up further ground to pro-cyclical growth currencies, like AUD and NOK, if the global outlook improves.
EUR:  Vaccination rollouts, a parliament vote for unlocking EU aids and national talks about a European vaccine passport scheme are themes to watch this month.
JPY:  We could see a potential sell-off in equity markets if the global outlook deteriorates in response to a new wave of COVID infections.