Download Currency Outlook
The key drivers of currency direction through June are likely to be:
- Employment data, especially in the US.
- Surging commodity prices and inflation, which are areas of concern for G10 central banks. The currency market could respond to any commentary that suggests rising inflation is more than just a phase as this would likely require intervention from central banks.
- Any commentary from the US Federal Reserve or other central banks around tapering of bond-buying programs.
- The direction of the US dollar and whether the DXY index can sustain a move off 3-year lows, particularly given the strength across GBP and EUR.