Monthly Currency Outlook - April 2022

Written by George Vessey, UK Currency Strategist 

Highlights include:

US dollar:  The Fed will monitor key jobs and inflation data to help it decide whether to raise rates by 50 basis points in early May.
Canadian dollar: The war in Ukraine has exacerbated inflation risks, particularly with oil up more than 50% after ending 2021 at $75.
British pound: GBP/USD has yet to break below $1.30, but if geopolitical tensions intensify along with the sentiment and commodity shock rattling markets, this key support level may soon give way.
Euro:  The longer war in Ukraine persists, the higher the odds that the Russian president loses his temper accentuates military pressures in region.
Japanese yen:  The global outlook is very uncertain, but investors aren’t panicked yet which offers room for a re-rating of the Japanese currency should confidence crack.