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FX Markets

FX Markets

A service for investors who are either managing risk, or who are looking to enhance their returns by actively taking on foreign exchange risk, FX Markets offers in-depth coverage of more than 30 advanced and emerging market currencies, focusing on the underlying macroeconomic drivers of foreign exchange markets.

The subscription to this service includes 2-3 emailed publications a week, access to our online research archive and our economists, and the opportunity to attend our conferences, forums and webinars.

  • Timely, clear and concise research.
  • Unique, independent forecasts.
  • Rapid responses, concise summations and detailed analysis.

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Key Forecasts

 

2023

2024

2025

 

2023

2024

2025

DXY

105.7

101.0

96.9

USD/CNY

7.30

6.90

6.70

EUR/USD

1.05

1.10

1.15

USD/INR

83.0

80.0

78.0

USD/JPY

145

130

125

USD/BRL

5.10

5.00

5.00

GBP/USD

1.20

1.20

1.25

USD/MXN

19.00

20.50

21.00

USD/CAD

1.38

1.34

1.32

USD/ZAR

19.50

18.50

18.00

AUD/USD

0.64

0.68

0.74

Key Calls

  • We continue to think that the yen will rebound sharply against the dollar and other major currencies as bond yields in the US and elsewhere fall back over the coming year.
  • The Norwegian krone’s latest sell-off has left it substantially undervalued by our estimates. While it may continue to struggle in the near term, we expect the krone to strengthen against most other G10 currencies over the medium term.
  • We expect sterling to underperform the other European G10 currencies as interest rate expectations continue to fall back more in the UK than elsewhere, and sterling’s relatively rich valuation proves a headwind.
  • The rallies in the Czech koruna, Polish zloty, and Hungarian forint amid persistent and relatively high inflation has left the real effective exchange rates of these currencies near all-time highs. We think they are vulnerable to sharp falls over the coming quarters as external demand weakens.
  • We think the Indian rupee is poised to rebound against the dollar given our view that the economic growth in India will hold up relatively well, the current account deficit will narrow further, and monetary policy will be eased only gradually.
  • We expect the Mexican peso to fall sharply given the currency’s overvaluation, stretched positioning, and falling carry. We suspect slowing economic growth in the US may be the catalyst for depreciation.

All FX Markets Coverage

View list of all FX Markets coverage