Monthly Currency Outlook | Reports

Monthly Currency Outlook - February 2022

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

Monthly Currency Outlook February

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  Dollar volatility in January partly reflected how a considerable amount of U.S. economic optimism was already built into its value.
CAD:  Commodity currencies would be vulnerable to increased downside risk should geopolitical uncertainty in Ukraine intensify.
GBP:  Against a backdrop of heightened uncertainty and risks, the safe haven status of the US dollar means a stronger rotation out of riskier assets could see GBP/USD slump towards $1.30.
EUR:  By keeping a transitory stance on inflation, the ECB looks more and more isolated compared to its peers who are considering the acceleration of monetary tightening.
JPY:  If US Federal Reserve gives the green light to hike rates in March and tighten monetary conditions, the stock market could drop sharply.