Monthly Currency Outlook | Reports

Monthly Currency Outlook - August 2021

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

Monthly Currency Outlook August

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  Ahead of the Fed’s summer camp for central bankers, policy members will parse that latest employment and inflation data to help guide policy decisions.
CAD:  The evolution of the latest strain of the coronavirus holds the key to both investor risk sentiment and the direction of travel for commodity currencies.
GBP:  UK-EU tensions may also provide headwinds for sterling, but so far the UK currency has proven resilient to political noise this year.  
EUR:  Euro volatility could remain highly sensitive to the developing COVID situation in Europe and potential rules applied by countries to manage this.
JPY:  Another episode of risk-off volatility would be good for the yen. However, if equities stand up it is hard to imagine a significant and persistent uptrend.