Monthly Currency Outlook | Reports

Monthly Currency Outlook - July 2021

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

Monthly Currency Outlook July

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  Evidence of lower unemployment and higher inflation would suggest another hawkish statement from the Fed on July 28.
CAD:  The Bank of Canada’s July 14 meeting will come with new economic projections that, if bullish, could keep the loonie on an upward trajectory.
GBP:  The pound is still significantly above its five-year average rate of $1.30 versus the USD, but broke south of an upward sloping trend line last month, hinting at possible deeper declines.
EUR:  No market panic, no concern about a sharp depreciation of the euro. This formula should hold true for the summer unless we witness a sudden spike in credit rates.
JPY:  Investors will keep a close eye on the evolution of the pandemic around the globe, as countries experience new outbreaks due to variants.