Monthly Currency Outlook | Reports

Monthly Currency Outlook - May 2022

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

Monthly Currency Outlook May

Written by George Vessey, UK Currency Strategist 

Highlights include:

US dollar:  The dollar will use the Fed’s May 4 rate meeting as a guidepost for its coming prospects.
Canadian dollar:  Oil prices wavered above and below the key psychological threshold of $100, subjecting crude-linked currencies to bouts of volatility.
British pound:  Commodity-linked currencies have outperformed the pound significantly in 2022 given soaring prices, but this trend may reverse if global growth concerns continue to weigh on energy and metal prices.
Euro:  If the ECB sends any signals confirming a first hike in July or backing an early intervention, the euro could benefit from higher European yields.
Japanese yen: In a low market volatility environment, monetary divergences will hurt the yen as Japan lags behind its peers in the global tightening race.