Monthly Currency Outlook | Reports

Monthly Currency Outlook - December 2021

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

Monthly Currency Outlook December

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  While stronger, the dollar could soon run into key technical resistance. Treasury yields should continue to serve as a dollar compass with any meaningful rise likely to keep it biased higher.
CAD:  The Canadian economy showed signs of rebounding in the third quarter, particularly with the country’s jobless rate at pandemic lows of 6.7%, the lowest in 20 months.
GBP:  With more European countries going into lockdown, all eyes are on COVID-19 hospitalisation rates as the colder months draw in. Social mobility may stall, hindering economic activity.
EUR:  Markets are waiting for ECB signals about their next steps in 2022 as the deadline of its emergency QE is looming (March 2022).
JPY:  The evolution of the COVID situation and inflation momentum will be monitored by market participants as both those risks could hit the global outlook.