Download Currency Outlook
We expect these will be the key themes to watch in March:
- Treasury yields are surging across the world, reaching pre-pandemic levels and triggering a move away from riskier assets. If yields continue to go higher this could increase volatility and negatively pressure high equity valuations and "riskier" currencies.
- The success of COVID-19 vaccine rollouts continues to be an important factor driving direction of the major currencies.
- Sustained strength in commodity prices could continue to support AUD, NZD and CAD.
- March will be a busy month for central bank data releases however current programs are expected to be maintained. Watch out for any changes in policy which could trigger volatility.