Monthly Currency Outlook | Reports

Monthly Currency Outlook - October 2021

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

Monthly Currency Outlook October

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:  Nonfarm payrolls will be an important guidepost for the near-term trajectories of the dollar and Fed policy.
CAD:  The outlook for cross-border interest rates will be an important factor for USD/CAD over the coming months. Both Ottawa and Washington appear on track to raise borrowing rates around the second half of 2022.
GBP:  After finding its footing at $1.36, GBP/USD looks poised to test higher ground though. The $1.38-$1.39 area of congestion could be difficult to overcome, but the $1.40 psychological level is a key upside target.
EUR:  Concerns about likelihood of real estate turmoil in China spilling over to global financial markets could drag on the euro. A market sell-off would see the European currency weaken.
JPY: A US shutdown would stress credit markets and likely trigger turmoil on the US stock market. Such an event would benefit the yen.