Skip to main content

Epic central bank week ends in a draw on the FX front

Among the flurry of central bank announcements, the continued plunge in equity markets, and wild gyrations across core government bond markets, currencies have been pulled in several directions this week. While the US dollar is ending the week only a little stronger against most major currencies, it is close to its strongest level since 2002 and our view is it will rise further over the second half of the year as global growth continues to struggle and the Fed keeps outgunning other central banks in the race to bring inflation back to target. Indeed, given the worsening outlook for “risky” assets generally, we are reviewing our forecasts for a range of G10 and EM currencies and will publish revised forecasts next week, which we will also discuss during a Drop-In on Wednesday (register here).

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access