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Sep 03, 2021 | Monthly Currency Outlook

Currency Market Outlook - September 2021

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

Written by George Vessey, UK Currency Strategist 

Highlights include:

USD:The eyes are once again on the Fed and the possible reduction in purchases by the central bank. A further strengthening of the dollar could mainly depend on a choice of tapering and on expectations of a consequent rate hike.
GBP: Despite the high number of vaccinated people in the UK, the spread of the Delta variant raises concerns about the country's growth prospects and expects to understand how much this will affect the BOE's upcoming monetary policy decisions.
EUR:The recent weakness of the euro reflects fears about the growth prospects of the euro area due to uncertainties about the future German government, the evolution of the pandemic and the tensions in Afghanistan that suggest a further decline for the single currency. However, a strong upside potential should not be underestimated if these fears do not materialize.

 


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