Currency Markets: Major Banks’ Exchange Rate Forecasts – Q3, 2018
So far in 2018, the currency markets have reminded us how difficult it is to forecast future exchange rates and why it never pays to be complacent, as things change sharply and continuously.
When we were getting used to seeing the euro consolidating at three-year highs after a sharp recovery in 2017, the trade tensions between the world’s two major economies have cast dark shadows over the future of global commerce and unleashed a risk-averse reaction that crushed the euro and the pound.
But beyond that, we have witnessed how other political and economic events, like the problems around Brexit negotiation, migration issues in the EU or the threat of populism can easily impact the market and boost FX volatility. This can trigger serious complications for importers and exporters, whose businesses are especially sensitive to currency fluctuations.
We do not know what will happen in the near future – and indeed we refuse to make predictions or engage in speculation; however, we like to analyse the scenarios employed by the world’s leading banks. In particular, we focus on the factors that are most likely to generate volatility, in order to help you be prepared.
Find out for yourself what analysts of the main currency pairs are expecting for the coming months: download our Q3 2018 forecast now.