Monthly Currency Outlook | Reports

Monthly Currency Outlook - June 2022

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

Monthly Currency Outlook June

Written by George Vessey, UK Currency Strategist 

Highlights include:

US dollar:  Weaker U.S. data gives rise to worries about the economy tipping into recession over the coming year, capping gains for the dollar.
Canadian dollar:  Barring a surprise economic setback, the Bank of Canada appeared on track for big 50 basis point rate hikes in June and July.
British pound:  GBP/USD has yet to break below $1.20, but if global risk sentiment doesn’t improve and recession or stagflation fears come to fruition, this level could become less supportive.
Euro:  Monetary markets bet on a first rate hike in July but a sharp revision of both growth and inflation ECB forecasts released could urge the central bank to start tightening in June.
Japanese yen:  Markets are waiting for two 50 bps rate hikes in June and July in the US, but nothing is certain after that. Any sign of a slow down in the tightening race would boost market sentiment.