August was tumultuous month for FX markets, with the USD index plunging to 13-month lows on speculation that the Federal Reserve will soon cut interest rates. A dramatic sell-off in the USD/JPY pair, down 11% from July highs, also sent ripples across global currency markets.
With heightened expectations for further central bank moves in September – and the US presidential election looming – risks are growing for more volatility as we near the end of 2024
Download the September Global FX Outlook for critical insights into the trends and events that can help your business prepare for potential volatility ahead.
Key market themes to watch
Investors seem to have all but forgotten August’s volatility shock, and global equity benchmarks are approaching their previous highs as capital continues to flow out of the USD.
- The dollar is losing its crown: For the first time since the beginning of 2021 FX speculators are simultaneously bullish on the euro, pound, and yen versus the US dollar.
- Betting on lower policy rates: The Federal Reserve signaled its willingness to consider easing interest rates at its last meeting, which Jerome Powell confirmed at the Jackson Hole Symposium. September looks likely for a rate cut, but what happens afterwards remains uncertain.
- Continued China pessimism: 2019 was the last year in which Chinese equities experienced a net inflow of foreign capital. Japan’s Topix has outperformed China’s Shanghai Composite by the most since around 2007.
Watch our Market Insights provide a short summary of the most crucial insights from the September Global FX Outlook, and start making informed decisions for your business today.
If you have question about the September Global FX Outlook, or want to speak to one of our specialists about currency risk management, email us at [email protected]
