In their February 2018 Currency Outlook report, Tempus, an exchange rate and global payments company, provides a detailed report including the following topics and sections:
- The USD was at its lowest since 2011
- The Euro surged by 3.3%, reaching its best level in 3 years
- The Bank of Canada increased Interest Rates and the Canadian Dollar had a four-month high
- Equity markets, commodity and oil process reached record highs
- The GBP rose to levels last seen before the 2016 Brexit referendum
USD declined in January – experiencing eight consecutive weeks of losses.
The View – Heavy risk-appetite propelling other currencies
- Monetary normalization coupled with large gains across global markets has helped to boost many currencies in both major and emerging markets.
- The USD, after many years of appreciation, was bound to lose strength because of strong economic performance in other markets.
- Energy costs have recovered, oil has reached its highest level in three years, iron ore prices have soared as well as other commodities.
- A healthy environment has rendered new record highs for global markets and the USD has not been a beneficiary.
- At the beginning of February, inflationary growth fear sent Treasury bond yield curves into a frenzy, impacting equities and driving the dollar higher.
- If February presents good indicator data while markets drop, the USD could make up some lost ground.
- The European Central Bank will consider all options, including continuing the plan of the monthly purchase of EUR 30 BIL in sovereign bonds, to help maintain the currency’s current steady position.
- In spite of continuing rumors of the outing of the UK’s Prime Minster, the GBP has recovered almost all of its losses after the 2016 Brexit referendum.
IBC Members can download the complete Currency Outlook from the members-only section of the IBC website under the Special Reports section. IBC membership is free for all regular IHA members – to learn more and to join, visit the IBC membership information page.